create a New spreadsheet modelthat introduces a new scenario input, sayCash Needed,that reflects whether or not cash needed to start the year remains the same or goes up by 20% with respect to the previous year starting in 2021. So, the scenario values forCash Neededwould be SAME or GOES UP.

The excel sheet is attached

Scenario Summary Current Values: His 50 His 70 Changing Cells: Price Per Barrel $ - $ 50 $ 70 Requested Investment $ - $ 10,000,000 $ 10,000,000 Interest Rate On New Debt 4% 4% 4% Result Cells: NPV at 15% ($5,005,801.51) ($7,029,207.25) ($4,674,570.40) Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created. Changing cells for each scenario are highlighted in gray. His 90 $ $ 90 $ 10,000,000 $ 4% ($2,356,261.85) His 110 110 $ 10,000,000 $ 4% Yours 50 Yours 70 Yours 90 50 $ 5,000,000 $ 4% 70 $ 5,000,000 $ 4% 90 $ 5,000,000 $ 4% ($52,748.58) ($2,681,381.17) ($326,744.31) $1,991,564.23 Yours 110 110 5,000,000 4% $4,295,077.51 Yours 90 and Yours 110 are postive at the 15% required rate of return 15% required rate of return Fracking Oil Investment Decision Constants Income Tax Rate Cash Needed to Start Year Decline Rate Initial Production Rate (IPR) Interest on Junk Bonds 2016 NA NA NA NA NA Inputs Price Per Barrel Interest Rate on New Debt Requested Investment 2016 $ $ 2017 2018 20% 1,000,000 $ 0.70 500 500,000 $ 20% 1,000,000 0.30 NA 500,000 2017 NA 2018 NA $ 110 $ NA 5,000,000 NA NA Summary of Key Results Net Income After Taxes End-of-the-Year Cash On Hand End-of-the-Year Debt Owed Net Present Value of Investment 2016 NA NA NA NA 2017 6,842,466 $ 6,842,466 $ - $ NA 2018 2,356,598 9,199,064 NA Calculations Initial Production Rate/Day (IPR) Average Production/Day in the Year Barrels of Oil Produced in the Year 2016 NA NA NA 2017 2018 Income and Cash Flow Statement Beginning of-the-Year Cash On Hand 2016 NA $ 2017 1,000,000 $ 2018 6,842,466 Revenue Out of Pocket Costs and Expenses Oil Transport ($12/barrel) Well Operations ($3/barrel) General and Administrative Royalties to Land Owners Severance Taxes Interest on Junk Bonds Interest on New Debt Total Out of Pocket Costs and Expenses Income Before Taxes Income Tax Expense Net Income After Income Tax Expense NA NA NA NA NA NA NA NA NA NA NA NA NA $ 13,048,750 $ 5,119,125 4% $ $ $ 4% 500 325 118,625 $ $ $ $ $ $ $ $ $ 1,423,500 355,875 200,000 1,395,030 581,263 500,000 40,000 4,495,668 8,553,083 1,710,617 6,842,466 150 128 46,538 $ $ $ $ $ $ $ $ $ 558,450 139,613 200,000 547,281 228,034 500,000 2,173,377 2,945,748 589,150 2,356,598 Net Cash Position (NCP) Before Borrowing and Repayment of Debt Add: Increase in Borrowing Less: Repayment of Debt End-of-the-Year Cash On Hand $ NA NA NA 1,000,000 Debt Owed Beginning-of-the-Year Debt Owed Add: Increase in Borrowing Less: Repayment of Debt End-of-the-Year Debt Owed $ 2016 NA NA NA 1,000,000 Net Present Value Data $ (5,000,000) $ Net Present Value @ 15% #NAME? $ $ $ $ 7,842,466 1,000,000 6,842,466 $ $ $ $ 2017 1,000,000 1,000,000 - $ $ $ $ 9,199,064 9,199,064 2018 $ $ $ $ - 6,842,466 $ 2,356,598 NA NA $ $ 2019 2020 2021 2022 2023 2024 20% 1,000,000 $ 0.25 NA 500,000 $ 20% 1,000,000 $ 0.25 NA 500,000 $ 20% 1,000,000 $ 0.20 NA 500,000 $ 20% 1,000,000 $ 0.20 NA 500,000 $ 20% 1,000,000 $ 0.20 NA 500,000 $ 20% 1,000,000 0.15 NA 500,000 2019 NA 2020 NA 2021 NA 2022 NA 2023 NA 2024 NA 4% 4% NA 4% NA 2019 $ 1,541,666 $ $ 10,740,731 $ $ - $ NA 2019 4% NA 2020 1,016,250 $ 11,756,980 $ - $ NA 2020 4% NA 2021 655,964 $ 12,412,944 $ - $ NA 2021 NA 2022 412,771 $ 12,825,716 $ - $ NA 2022 NA 2023 2024 218,217 $ 79,867 13,043,933 $ 13,123,800 - $ NA #NAME? 2023 79 69 25,151 $ 2019 9,199,064 $ 2020 10,740,731 $ 2021 11,756,980 $ 2022 12,412,944 $ 2023 12,825,716 $ 2024 13,043,933 $ 3,688,781 $ 2,766,586 $ 2,134,223 $ 1,707,379 $ 1,365,903 $ 1,123,076 $ $ $ $ $ $ $ $ $ 402,413 100,603 200,000 394,364 164,318 500,000 1,761,698 1,927,083 385,417 1,541,666 301,809 75,452 200,000 295,773 123,239 500,000 1,496,274 1,270,312 254,062 1,016,250 232,824 58,206 200,000 228,168 95,070 500,000 1,314,268 819,955 163,991 655,964 186,260 46,565 200,000 182,534 76,056 500,000 1,191,415 515,964 103,193 412,771 149,008 37,252 200,000 146,027 60,845 500,000 1,093,132 272,771 54,554 218,217 122,517 30,629 200,000 120,067 50,028 500,000 1,023,242 99,834 19,967 79,867 $ $ $ $ $ $ $ $ $ 47 43 15,522 2024 105 92 33,534 $ $ $ $ $ $ $ $ $ 59 53 19,402 4% $ $ $ $ $ $ $ $ $ 38 34 12,417 $ $ $ $ $ $ $ $ $ 30 28 10,210 $ $ $ $ $ $ $ $ $ $ 10,740,731 $ $ - $ $ - $ $ 10,740,731 $ 2019 $ $ $ $ $ 11,756,980 11,756,980 $ $ $ $ 2020 - $ $ $ $ 12,412,944 12,412,944 $ $ $ $ 2021 - $ $ $ $ 1,541,666 $ 1,016,250 $ NA NA $ $ $ $ 2022 - $ $ $ $ 655,964 $ NA 12,825,716 12,825,716 $ 13,123,800 $ $ $ 13,123,800 2023 - $ $ $ $ 412,771 $ NA 13,043,933 13,043,933 2024 - $ $ $ $ 218,217 $ NA 79,867 NA Fracking Oil Investment Decision Constants Income Tax Rate Cash Needed to Start Year Decline Rate Initial Production Rate (IPR) Interest on Junk Bonds 2016 NA NA NA NA NA Inputs Price Per Barrel Interest Rate on New Debt Requested Investment 2016 $ $ $ - 2017 2018 20% 1,000,000 $ 0.70 500 500,000 $ 20% 1,000,000 0.30 NA 500,000 2017 NA 2018 NA NA $ 4% - 4% NA NA Summary of Key Results Net Income After Taxes End-of-the-Year Cash On Hand End-of-the-Year Debt Owed Net Present Value of Investment 2016 NA NA NA NA Calculations Initial Production Rate/Day (IPR) Average Production/Day in the Year Barrels of Oil Produced in the Year 2016 NA NA NA 2017 Income and Cash Flow Statement Beginning of-the-Year Cash On Hand 2016 NA 2017 1,000,000 Revenue Out of Pocket Costs and Expenses Oil Transport ($12/barrel) Well Operations ($3/barrel) General and Administrative Royalties to Land Owners Severance Taxes Interest on Junk Bonds Interest on New Debt Total Out of Pocket Costs and Expenses Income Before Taxes Income Tax Expense Net Income After Income Tax Expense NA NA NA NA NA NA NA NA NA NA NA NA NA $ $ $ 2017 2018 (2,277,380) $ (1,303,126) 1,000,000 $ 1,000,000 3,277,380 $ NA NA 2018 500 325 118,625 $ $ 1,423,500 355,875 200,000 (170,820) (71,175) 500,000 40,000 2,277,380 (2,277,380) 150 128 46,538 2018 $ - 558,450 139,613 $ $ 200,000 $ $ (67,014) $ $ (27,923) $ $ 500,000 $ $ $ $ 1,303,126 $ $ (1,303,126) $0 $0 $ (2,277,380) $ (1,303,126) Net Cash Position (NCP) Before Borrowing and Repayment of Debt Add: Increase in Borrowing Less: Repayment of Debt End-of-the-Year Cash On Hand $ NA NA NA 1,000,000 Debt Owed Beginning-of-the-Year Debt Owed Add: Increase in Borrowing Less: Repayment of Debt End-of-the-Year Debt Owed $ 2016 NA NA NA 1,000,000 Net Present Value Data $ Net Present Value @ 15% #NAME? $ $ $ $ (1,277,380) 2,277,380 1,000,000 $ (1,303,126) $ 2,303,126 $ $ 1,000,000 2018 $ $ $ $ 2017 1,000,000 2,277,380 3,277,380 $ (2,277,380) $ NA $ $ $ $ (1,303,126) NA $ $ 2019 2020 2021 2022 2023 2024 20% 1,000,000 $ 0.25 NA 500,000 $ 20% 1,000,000 $ 0.25 NA 500,000 $ 20% 1,300,000 $ 0.20 NA 500,000 $ 20% 1,690,000 $ 0.20 NA 500,000 $ 20% 2,197,000 $ 0.20 NA 500,000 $ 20% 2,856,100 0.15 NA 500,000 2019 NA 2020 NA 2021 NA 2022 NA 2023 NA 2024 NA 4% 4% NA NA 2019 $ (1,134,606) $ $ 1,000,000 $ $ - $ NA 2019 105 92 33,534 402,413 100,603 $ 200,000 $ (48,290) $ (20,121) $ 500,000 $ $ 1,134,606 $ (1,134,606) $0 $ (1,134,606) $ 4% 4% NA 2020 (1,025,954) $ 1,000,000 $ - $ NA 2021 (951,450) $ 1,300,000 $ - $ NA 2022 (901,160) $ 1,690,000 $ - $ NA 2023 (860,928) $ 2,197,000 $ - $ NA 2024 (832,319) 2,856,100 #NAME? 2020 2021 2022 2023 2024 59 53 19,402 2020 - 4% NA 79 69 25,151 2019 $ 4% 47 43 15,522 2021 301,809 75,452 200,000 (36,217) (15,090) 500,000 1,025,954 (1,025,954) $ $ $ $ $ $ $ $0 $ (1,025,954) $ $ $ $ $ $ $ $ $0 $ NA 38 34 12,417 2022 232,824 58,206 200,000 (27,939) (11,641) 500,000 951,450 (951,450) $ $ $ $ $ $ $ $ $0 (951,450) $ NA 30 28 10,210 2023 186,260 46,565 200,000 (22,351) (9,313) 500,000 901,160 (901,160) $ $ $ $ $ $ $ $ $0 (901,160) $ 2024 149,008 37,252 200,000 (17,881) (7,450) 500,000 860,928 (860,928) $ $ $ $ $ $ $ $ $0 (860,928) $ 122,517 30,629 200,000 (14,702) (6,126) 500,000 832,319 (832,319) (832,319) $ (1,134,606) $ $ 2,134,606 $ $ - $ $ 1,000,000 $ 2019 $ $ $ $ $ $ $ $ $ 2020 - $ $ $ $ (1,134,606) $ NA (1,025,954) 2,025,954 1,000,000 $ $ $ $ 2021 - $ $ $ $ (1,025,954) $ NA (951,450) 2,251,450 1,300,000 (901,160) 2,591,160 1,690,000 $ $ $ $ 2022 - $ $ $ $ (860,928) 3,057,928 2,197,000 $ $ $ $ 2023 - $ $ $ $ (832,319) 3,688,419 2,856,100 2024 - $ $ $ $ - (951,450) $ (901,160) $ (860,928) $ (832,319) NA NA NA NA 30% Increase after 2021