Answer Happy

7. In October 2019, Frakel Corporation drilled an exploratory well that found oil. However, the quantity of oil discovered was not commercially producible unless the price of oil went up from the current price of $50 per barrel to $75 per barrel. Frankel decided to defer classification of the well for up to one year because its financial advisors felt that there was a high probability that oil prices would go up during the next year. Please comment.