TransAtlantic Petroleum Corp. plans to seek two additional production licenses from the Romanian government in addition to the three production licenses awarded to the company last year. The company estimates the costs to drill, acquire the seismic data, and conduct technical studies for these new fields will be $8.8 billion, 3 years from now. How much will the company need to set aside now for these expenses if the company earns a rate of return of 9% per year?

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The Answer of TransAtlantic Petroleum Corp. plans to seek two additional production licenses from the Romanian government in addition to the three production licenses awarded to the company last year. The company estimates the costs to drill, acquire the seismic data, and conduct technical studies for these new fields will be $8.8 billion, 3 years from now. How much will the company need to set aside now for these expenses if the company earns a rate of return of 9% per year?