As a young Petroleum engineer, you have been asked to contemplate the potential for a water flood project in the Wilcox field. Data provided is below. L=1mileW=0.5milesH=300ft Porosity =20% Water Saturation 10% BOE produced to data =3 million Recovery Factor to date =10% Water flood recovery factor =25% Oil price is $60 per BOE flat for Project life Rate of production is rateable over 5 yrs. Project life Initial investment is $50 million Operating cost is $10 million per year What is the IRR, NPV, and DPP? Would you do this project