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A4-7 Your company is currently considering an acceleration program to enhance the timing of production and quantity of reserves from an existing lease. The before-tax
A4-7 Your company is currently considering an acceleration program to enhance the timing of production and quantity of reserves from an existing lease. The before-tax cash flows (BTCF) for the two alternatives are summarized below in thousands of dollars. 3,600 2,800 2,200 1,640 1,120 600 Current 0 1 2 3 4 5 6 -2,940 7,000 4,600 2,400 400 Proposed 0 1 2 3 4. 5 6 The investor's before-tax minimum rate of return is 12.0%. Use ROR analysis to evaluate the economics of this acceleration program and support those findings with NPV analysis
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