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1. For the development of a newly discovered off-shore oil field, inputs from reservoir and facilities engineers produced the following estimated net-cash-flow after taxes. It

1. For the development of a newly discovered off-shore oil field, inputs from reservoir and facilities engineers produced the following estimated net-cash-flow after taxes. It is known that there are other opportunities exist with an interest rate of 20% and the company's hurdle DPI is 1.2. Year Net Cash Flow After Tax, million USD 0 -150 1 -50 2345 -44 125 150 145 5 Perform an economic analysis by calculating the following economic indicators and recom - mend a decision of accepting or rejecting this offshore development project. (a) Net present value (NPV) (b) Rate of return(ROR) (c) Discounted profitability index (DPI) (d)Value creation (e) Discounted payback periodimage text in transcribed

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