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93 A project requires US$ 260 Million of total Investment, which excludes exploration Sunk Cost of US$ 32 MM. First oil is expected to
93 A project requires US$ 260 Million of total Investment, which excludes exploration Sunk Cost of US$ 32 MM. First oil is expected to be in year 4. Below is the forecasted annual Net cash Flow for your assessment. Calculate the economic indicators for the project life at January Year 3. MARR=10% Net Cash Flow MMS 32 Year 1 Year 2 Year 3 Year 4 Year 5 80 260 90 80 Year 6 Year 7 70 Year 8 50 Find: Max cash sink, discounted Payback period, discounted PIR, and NPV.
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