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water or CO2 down into the wells in order to increase the flow of oil and gas from the structure. The expected cash flows for
water or CO2 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? two projects? c. If Plato's management uses a discount rate of 18.3 percent to evaluate the present values of its energy investment projects, what is the NPV of the two proposed investments? d. What is your estimate of the value that will be created for Plato by the acceptance of each of these two investments? Data table a. Given the cash flow information in the table, the payback period of the Barnett Shale project is years. (Round to two decimal places.)
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