Plot the appraisal price in dollars that can be paid for combined lease bonus and speculative drilling cost using the fo

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Plot the appraisal price in dollars that can be paid for
combined lease bonus and speculative drilling cost using the
following risk: 1,5, and 10 %. The prospect is a
80- acre tract, pay thickness is 100 ft. The probability of dry
hole is set at 50%. If the well is successful, recovery in bbls per
acre-ft may be as low as 100 to as high as 200, with most probable
recovery being 150 bbl/acre-ft. Operating profit may be taken as $
3 per barrel. Completion costs for a successful well will exceed
the cost of a dry well by $40,000. Assume the exploration budget is
0, 3, 6 and 10 MM dollars