Trope Oil Company Is Considering Drilling an Exploratory Well

Multiple Choice

Trope Oil Company is considering drilling an exploratory well.The symbol P is the chance of a successful well,R is the revenue from a successful well,L is the price previously paid for the land,and C is the cost of drilling.The well will either be successful or dry.A company that is risk-neutral should drill if:

A) PR > C.
B) PR > C + L.
C) P(R - C) > 0.
D) P(R - C - L) > 0.
E) P(R - C) > L.