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AGH Oil Co. is considering drilling a new self-sustaining oil well at a cost of 1011016...

AGH Oil Co. is considering drilling a new self-sustaining oil well at a cost of 1011016 AUD. This well will produce 100 000 AUD worth of oil during the first year, but as oil is removed from the well the amount of oil produced will decline by 2% per year forever. If the project's appropriate interest rate is 8%, then the NPV of this oil well is closest to:

a. 238984 AUD

b. -238984 AUD

c. -11016 AUD

d. 655651 AUD

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