1- Evaluate the investment opportunity in a natural gas field if the probability of oil discovery is 50% and exploration costs are $3 billion. The net cash flows during the life of the project are as follows: cash flow for the year $3 billion for the first year 4 billion US dollars for the second year $8 billion for the third year $8 billion for the fourth year $8 billion for the fifth year Share of government participation in NPV and exploration cost 35% Investment cost rate = 10%

2- Evaluate the investment opportunity in a natural gas field if the probability of oil discovery is 10% and exploration costs are 1 billion dollars. The net cash flows during the life of the project are as follows: cash flow for the year 2 billion for the first year 1 billion USD for the second year 1 billion US dollars for the third year 1 billion USD for the fourth year 1 billion US dollars for the fifth year Share of government participation in NPV and exploration cost 25% The average cost of investment = 15%