Tyler Oil Corporation estimates the following costs to acquire, drill, and complete

a well on Lease A:

Acquisition costs $..........................................................$

Drilling and completion costs $..............................................$

Selling price of oil $($$$/$bbl$).....................................................$

Lifting costs $($$$/$bbl$)..........................................................25$

State severance tax rate $.....................................................5\%$

Royalty interest $.................................20\%$

REQUIRED: Would the investment be profitable if proved reserves are:

a$.12,000bbl?$

b$.18,000bbl?$

c$.24,000bbl?$