3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform Initial Cost, $ million M & O, $ million per year Salvage Value, $ million Estimated Life, years X 300 320 75 20 Y 450 290 50 20 Z 510 230 90 20

3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform Initial Cost, $ million M & O, $ million per year Salvage Value, $ million Estimated Life, years X 300 320 75 20 Y 450 290 50 20 Z 510 230 90 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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