44 Oil and Gas Property Evaluation 60.000 37,650 31,436 2495 18.020 12300 40.000 20,000 5 -2.08 0 1 20.000 Yearly Net Cash Flow AFIT, S 10.000 60.000 80.000 - 100.000 - 120.000 120.000 140,000 1-10 Assume income taxes are 35% of taxable income for the following question. Taxable income is operating income less depreciation. Use the information from Problem 0. a) Prepare a net cash flow analysis AFIT for this investment. For income tax purposes, use straight line depreciation assuming a five year life. Prepare a net cash flow diagram. MORE PROBLEMS FOLLOW ON NEXT PAGE 44 Oil and Gas Property Evaluation 60.000 37,650 31,436 2495 18.020 12300 40.000 20,000 5 -2.08 0 1 20.000 Yearly Net Cash Flow AFIT, S 10.000 60.000 80.000 - 100.000 - 120.000 120.000 140,000 1-10 Assume income taxes are 35% of taxable income for the following question. Taxable income is operating income less depreciation. Use the information from Problem 0. a) Prepare a net cash flow analysis AFIT for this investment. For income tax purposes, use straight line depreciation assuming a five year life. Prepare a net cash flow diagram. MORE PROBLEMS FOLLOW ON NEXT PAGE