Explanation: 1. Revenue (Oil Sales): - 2025:10% of 3,200,000 barrels 60 0.7 (geologists' confidence) 0.6 (government share) = 84,672,000 - Repeat this calculation for each year from 2026 to 2032. 2. Variable Production Costs: - 2025: 10% of 3,200,000 barrels 31 0.7 (geologists' confidence) =6,992,000 - Repeat this calculation for each year from 2026 to 2032 . 3. Incremental Fixed Costs: 1,400,000 per annum from 2025 to 2032. 4. Transportation Costs: - Calculate the transportation cost for each year based on the volume of oil transported (using stepped costs). - Sum these costs for each year from 2025 to 2032. 5. Development Costs: 750,000 in 2024. 6. Environmental Reinstatement Costs: 1,300,000 at the end of the project (2032). 7. Capital Expenditure (Initial Investment): 10,000,000 in 2024. 8. Equipment Disposal Value: 700,000 at the end of the project