Assume that you are the chief financial officer in an oil company. To control the fluctuations in oil prices and to maintain a low level of financial risk, the company decides to diversify their returns. Your responsibility involves evaluating a project and presenting a comprehensive report to the board of directors.

Part One:

2. Estimate all the needed figures for decision-making, such as cash inflow and outflow.

3. Critically apply various capital budgeting techniques studied in the course.

4. Critically provide a final recommendation for the project.

Part Two: 2. Evaluate the same project with the same figures from part one, after taking into a considerable account the followings: 2.1 Evaluate the project using the Net Present Value (NPV) technique after considering the inflation's impact. 2.2 Assess the project's NPV after considering the effects of taxation. 2.3 Analyze the project by incorporating sensitivity analysis on cost variables.