1 2 1 WONDAENERGY plc formed in production. Last year the company n net profit pre-tax of 68 million, bas announced in the annual report for th The company has the option to en Boaland (a country with a developi develop and produce oil from the re geologists believe that there are 3,20 under consideration. The contract transportation operations will be the of any oil extracted will be the government will pay their share of variable costs of production and geologists believe that they are conf

government are certain. WONDAEN all c

alculations. The company will on market on the mainland. Production

follows: 2025 10%; 2026 17%; 2027 3%;2032 2%. The price of oil at present at the wi costs of production are 31 per bar exploration research costing 500 remainder will be paid at the star

Variable cost of Variable cost of Variable cost of Variable cost of From the above inform and a risk averse appro all your findings. d) The directors wish you allow for other financial You are requested to ur directors in week 12. Ple of no more than 800 constructed) to your s questions pertaining to discussion site on GCU attached to the project of 1,400, project once production commenc costs, which is an area of difficulty within the near vicinity. The comp transportation company who spe However, the costs being charged year. The costs behave in a steppe of oil transported in a year jumping these costs there will be developm production there are environmental There will be initial capital expendi and equip the drilling sites. It is esti life cycle of 8 years and be cappe end of this period the drill-rigs an 700,000. All figures quoted above are at cur per annum and is also relevant to c) The directors beli as follows: Geologist Geologist Geologist Geologist Variable Variable c Variable Variable From the above and a risk avers all your findings. d) The directors wis allow for other fir You are request directors in week of no more tha constructed) to questions pertai attached to the project of f project once production co costs, which is an area of within the near vicinity. The transportation company wh However, the costs being ch year. The costs behave in a of oil transported in a year ju these costs there will be de production there are environ There will be initial capital and equip the drilling sites. I life cycle of 8 years and be end of this period the drill-1 700,000. All figures quoted above are per annum and is also relev oil prices are likely to rise cost of capital of 11.3%. T Required: a) Calculate the net outlined above an offers a more prud b) Some of the dire investment. Two m The percenta geologists The anticipate Using the same manipulate the da outcomes of the 85%, as given, 65 cost of production existing price. c) The directors belie Variable cost of Variable cost of Variable cost of Variable cost of From the above inform and a risk averse appro all your findings. d) The directors wish you allow for other financial You are requested to ur directors in week 12. Ple of no more than 800 constructed) to your s questions pertaining to discussion site on GCU attached to the project of 1,400, project once production commenc costs, which is an area of difficulty within the near vicinity. The comp transportation company who spe However, the costs being charged year. The costs behave in a steppe of oil transported in a year jumping these costs there will be developm production there are environmental There will be initial capital expendi and equip the drilling sites. It is esti life cycle of 8 years and be cappe end of this period the drill-rigs an 700,000. All figures quoted above are at cur per annum and is also relevant to c) The directors beli as follows: Geologist Geologist Geologist Geologist Variable Variable c Variable Variable From the above and a risk avers all your findings. d) The directors wis allow for other fir You are request directors in week of no more tha constructed) to questions pertai attached to the project of f project once production co costs, which is an area of within the near vicinity. The transportation company wh However, the costs being ch year. The costs behave in a of oil transported in a year ju these costs there will be de production there are environ There will be initial capital and equip the drilling sites. I life cycle of 8 years and be end of this period the drill-1 700,000. All figures quoted above are per annum and is also relev oil prices are likely to rise cost of capital of 11.3%. T Required: a) Calculate the net outlined above an offers a more prud b) Some of the dire investment. Two m The percenta geologists The anticipate Using the same manipulate the da outcomes of the 85%, as given, 65 cost of production existing price. c) The directors belie