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Q 1 The capital investment of a new crude oil refinery is 300 million dollars. The capacity of Refinery is 100000 bbls a day. Two

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Q 1 The capital investment of a new crude oil refinery is 300 million dollars. The capacity of Refinery is 100000 bbls a day. Two years are needed for erection. The operating cost is 100 millions dollars per year. Salvage value of refinery is zero after 10 years of operations. Using current world oil prices given, calculate ROR, ER, Payout period, DCFROR. and draw cash flow diagram. The refinery works 300 days a year. Material Crude LPG Gasoline Kerosine Oil Gas Oil Fuel Oil 100 140 160 130 120 90 Price Sbbl bbls/day 100000 5000 15000 20000 20000 40000 Repeat the scenario if crude oil and all product prices drop to 60 percent of listed prices. Q 1 The capital investment of a new crude oil refinery is 300 million dollars. The capacity of Refinery is 100000 bbls a day. Two years are needed for erection. The operating cost is 100 millions dollars per year. Salvage value of refinery is zero after 10 years of operations. Using current world oil prices given, calculate ROR, ER, Payout period, DCFROR. and draw cash flow diagram. The refinery works 300 days a year. Material Crude LPG Gasoline Kerosine Oil Gas Oil Fuel Oil 100 140 160 130 120 90 Price Sbbl bbls/day 100000 5000 15000 20000 20000 40000 Repeat the scenario if crude oil and all product prices drop to 60 percent of listed prices

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