please help me with this problems

14)

(Payback period and NPV calculations) Plato Energy is an oil and gas exploration and development company located in Farmington, New Mexico. The company drills shallow welis in hopes of finding significant oil and gas deposits. The firm is considering two different drilling opportunities that have very different production poterials. The first is in the Barnett Shale region of Central Texas and the other is in the Gulf Coast The Barnett Shale project requires a much larger initial investment but provides cash flows if successful) over a much longer period of time than the Gulf Coast opportunity. In addition, the longer life of the Barnett Shale project also results in additional expenditures in year 3 of the project to enhance production throughout the projects 10-year expected ife. This expenditure involves pumping either water or CO, down into the wells in order to increase the flow of oil and gas from the structure. The expected cash flows for the two projects are as follows: a. What is the payback period for each of the two projects? b. Based on the payback periods, which of the two projects appears to be the best alternative? What are the limitations of the payback period ranking? That is, what does the payback period not consider that is important in determining the value Creation potential of these two projects c. If Plato's management uses a discount rate of 21.9 percent to evaluate the present values of its energy investment projects, what is the NPV of the two proposed investments? What is wa watimate of the value that will ha creator for Plain how the antara nahahawan a. Given the cash flow information in the table, the payback period of the Bamett Shale project is year Round to two decimal places) Data table Year Barnett Shale Gulf Coast 0 $14,800,000) ${1 300.000) 1,920.000 750,000 1.920,000 750,000 3 (960,000) 450.000 1.920.000 150.000 5 1.520.000 1,520,000 1.520.000 750,000 600.000 10 120.000 (Click on the icon in order to copy its content areal) Print Done