3-21 The following data relates to an oil and gas lease. Costs and production are in thousands. Production is in barrels of oil equivalent (BOE). Year 0 1 2 3 4 5 Production, (BOE) 175 100 75 55 35 Intangible Drilling 7,500 2,500 Tangible Equipment 6,700 Lease Bonus 1,000 Operating Costs 1,750 1,000 750 500 250 Selling Price, S/BOE 80.00 80.00 80.00 80.00 80.00 Royalties are 12.5% of gross revenue. Liquidation Value $0 1) Calculate the annual before-tax cash flows for years 0-5. 2) Determine the project ROR, NPV, and PVR for a minimum rate of return of 15%. 3) Determine the break-even product selling price in years 1 through 5 that would provide the investor with a 15% ROR