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BPPLC owns an oil lease on a tract of land. Actual extraction of oil may...

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BPPLC owns an oil lease on a tract of land. Actual extraction of oil may be done fairly quickly. If BP PLC extracts immediately, it will earn $400 million. However, oil prices are expected to rise 15% per year for 3 years, 14% per year for the following 2 years, 13% per year for the following 2 years, 10% per year for the following 4 years and 5% per year thereafter for the foreseeable future. The opportunity cost of capital for this project is 12%. When should BP PLC extract the oil? Extract in year 11. Never extract it. Extract in year 5. Extract in year 3. Extract in year 7 . If the correlation coefficient between Stock PG\&E and Stock CDW is -0.45 , what is the correlation coefficient between Stock CDW with Stock PG\&E? 0.45 It cannot be determined. +0.450.55+0.55

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