Depreciation is an allowable deduction for income tax calculations by IRS. A. Yes. B. No. C. None of above. The earlier and larger amount of DD\&A of CAPEX from revenues, the better economics will be for a project. A. Yes. B. No. C. None of above. A project requires an investment of $5MM at time zero. Estimated profit for year 1 is $5MM with a success rate 50%. However, probability of a project failure is 10%. There is 20% chance for the profit to double and 20% chance for the profit to halve due to the uncertainty in commodity prices. Would you recommend investment in such a project? A. Yes B. No C. Maybe D. None of above