Jerry discovers petroleum bubbling up from the ground near his barn. He pays $8,000 for a petroleum engineer to take a look. The engineer says that, if Jerry puts up a $2 million oil rig, he can expect to pump 40,000 barrels of oil from the ground each year for eight years, and then the well will run dry. Jerry figures he can sell the oil for $35 per barrel at the wellhead (that is, the buyer will pay all transportation). Jerry has a discount rate of 22%. Should he invest in the oil rig

He should invest in oil rig as it gives profit of $9,632,000.

Explanation:

According to the scenario, computation of the given data are as follows:

Paid to engineer = $8,000

Invest in oil rig = $2,000,000

Rate of discount = 22%

So, Discount amount = $2,000,000 X 22% =  = $440,000

Expected oil = 40,000 barrels per year

So, Total oil after 8 years = 40,000 × 8 = 320,000 barrels

Selling price = $35

So, total sales value = 320,000 × $35 = $11,200,000

Total profit = (Total sales + Discount amount) - (Total Investment + Paid to engineer)

= ( $11,200,000 + $440,000 ) - ( $2,000,000 + $8,000)

= $11,640,000 - $2,008,000

= $9,632,000

As this gives the profit of $9,632,000, so he should invest in oil rig.

c.

explanation:

regressive tax taxes the poor and less of the wealthy. this the rich get richer and the poor get more poor. this would create a large wealth gap.

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.