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(Payback peried and NPV calculations) Plato Energy is an ol and gas exploration and development company locatod in Farmingion, New Mexico. The company dills shalow

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(Payback peried and NPV calculations) Plato Energy is an ol and gas exploration and development company locatod in Farmingion, New Mexico. The company dills shalow wells in hopes of a. What is the panfack period for each of the two projects? consiber that is important in delerminn the value creation polentid of these fwo projects? d. What is your estimate of the value that wil be created for Plato- by the acceptance of each of trese wo investenents? Data table a. Given the cash flow information in the table, the payback period of the Barnett shale project is years. (Rouzid to two decimal places.) The poybsck period of the Gur Coast peoject is years. (Round to two decimat placos) b. Baseo on the paybeck, periods calculated above, the projoct which looks best using the payback criterion is (Select from the drop-down merci) propets? (Select the best choice telow.) A. The saybsck method liznores the time vakie of money. 10. There is no cloar-out way to define the cutoff crherion for the payback peried that is sied to the walve creation potentia of the investment. The paytack method ignores cash flows that are generated by the project beyond De end of the paytack fericd. Ail of the above. miarest dolar, ) (Rourd to the dollar) d. The value that wir be creasid for Plano by the acceptance of the Bemett Shele project is 1 (Round to the nearest doliar) The value thet wit be created toe Plano by the aposptance of the Gurf Coast propect is $ (Found to the neatest dota.)

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