An oil lease containing an estimated 2,000,000 barrels of oil equivalent may be obtained at time zero for a lease bonus cost of $7,000,000. Additional time zero geological and geophysical costs are estimated to total $500,000. These acquisition and g&g costs would be followed by development of the lease and would involve an end of year one investment of $5,000,000 in intangible drilling costs and $4,000,000 intangible completion costs and equipment. When appropriate, assume a six-month deduction in the year costs are incurred for all amortizable costs. Depreciation of tangible equipment will begin in year one assuming all such costs may be treated as 7-year MACRS depreciable property. Production in the latter half of year one is estimated at 150,000 barrels of oil equiva- lent (BOE). Year two production is estimated at 350,000 BOE with 275,000 in year three and 200,000 in year four. It is expected that the property would be sold for $8,000,000 at the end of year four. Assume a uniform selling price of $65.00 per barrel of oil equivalent each year over the 4-year producing period. Operating costs are estimated to be $15.00 per BOE and also forecasted to remain con- stant. Royalties are estimated at 12.5% of gross revenue. Assume all remaining book values will be written off against the sale value and assume any gain will be taxed as ordinary income. Other income exists against which to use all deductions in the year incurred. Assume a 21% Federal income tax rate and a 5.0% State income tax rate. The property is in the United States and the investor's escalated dollar after-tax minimum rate of return is 15%. A) B) Calculate the ATCFs for the project if the investor is: 1) Integrated Oil and Gas Producer 2) Non-Integrated Producer with > 1,000 BOE per day 3) Non-Integrated Producer with 1,000 BOE per day 3) Non-Integrated Producer with