An oilfield is currently under consideration for in-fill drilling. The net revenues for two alternatives are shown below. Which option will you select? Show all calculations. Assume the MROR is 18%

Year 0 1 2 3 4 5 6 No Drilling 0 600,000 475,000 400,000 325,000 260,000 130,000 In-Fill Drilling -1,170,000 1,900,000 900,000 440,000 100,000 0 0