3) The following is an estimated oil production rate as function of time for a reservoir Year Capital investment Bonus & Leasehold 4 6 7 8 Calculate the yearly before tax net cash flow given: Mineral oil royalty = 20% = $20/bbl = 15% of the net interest revenue Oil price Local Tax Operating cost Overhead = Production rate bbl/day 400000 200000 100000 50000 250000 12000 $ 5/bbl 6000 3000 = $15* 106 per year plus 20% on investment = $ 500 * 106 = $ 100 * 105