1. If you are assigned the responsibility of investigating the feasibility of drilling an infill well in a mature field, state the essential data you will collect. What are the criteria? What alternatives would you consider?
2. An oil company is thinking of buying a computer.Because of the advances in technology, the computer price depreciates at a rate of 25% per year. The maintenance and the upkeep costs increase gradually. The cost of the computer is $5000 and the upkeep costs in the first year are $700 with an increase in the cost at a rate of 10% per year. What strategy should the company adopt to maximize the computer benefit? Assume that, due to advances in technology, it is worth buying a new computer when the yearly costs start rising after reaching a minimum.