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2. Your company is considering the following investment opportunities in upstream oil and gas industry. The average investment opportunity rate for your company is 10%.
2. Your company is considering the following investment opportunities in upstream oil and gas industry. The average investment opportunity rate for your company is 10%. Ignore the effect of taxes in your calculations and use end of year discounting. Project A Year | Oplnc, M$ Investment, M$ 500 0 1000 2000 2500 7500 4200 2000 1200 600 Project B Project C Oplnc, M$ | Investment, M$ | Opinc, M$ | Investment, M$ 500 1500 0 1000 2200 2200 1500 2000 2300 4000 1000 3500 3600 1000 3150 3100 2850 2900 2600 2650 2370 1400 2160 1925 1730 a. Rank these projects based on NPV, IRR and DROI. b. If your company has only $6 million capital available for investment, which project would you recommend to the board of directors? c. If your company manages to gather $11 million capital for investment, which project(s) would you recommend to the board of directors
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