AGRICULTURAL ECONOMICS 330
Cost of Drilling Well Item Cost Drilling ($12/ft) $1,800 Casing ($60/hr) 180 Cement 200 Test Pump 1,100 Fuel for Test Pump 500 Complete Installation 4,000 Underground Pipe 1,400 Total Cost $9180 1.1 Lay out the cash flows for the investment. 1.2 Calculate the net present value (NPV=$6,548) and the internal rate of return (yield). ................
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