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Mathematics 8 Online
OpenStudy (anonymous):

An oil company discovered an oil reserve of 100 million barrels. For time , in years, the company's extraction plan is a linear declining function of time as follows: where is the rate of extraction of oil in millions of barrels per year at time and and . (a) How long does it take to exhaust the entire reserve? time = years (b) The oil price is a constant 40 dollars per barrel, the extraction cost per barrel is a constant 16 dollars, and the market interest rate is 9 percent per year, compounded continuously. What is the present value of the company's profit?

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