How to calculate it

Freeze Activity CH 12 FRI drilling rights 4i4/17 land its $85,000 for a of extraction owns track for company equipment needed S77000 A in needed related investment investment net of Working capital sale gas, Annual receipts from of 9,000 cash expenses extraction work annual cash operating completion of Cost restoring land at of Tract land will be exhausted of its oil after 10 years. for of ent has a useful life 15 years, could be sold but $63,000 at the end of the project. Company's diseount rate is 10%. the project. Working capital is released at the completion of The company wants to recoverits costs in 5 years and earn a rate of return of 12%