You are an investment analysis expert working for an investment company and you are offered an oil field investment opportunity. If risk free rate is 5%, using certainty equivalent method, should your company invest in it or not? Explain why or why not. (Refer to Table 1 below, no decimals are needed)

Table 1

Initial Investment	$100 Million to be depreciated over 5 years using straight line method with zero salvage value
Investment Period	5 years
Total Oil Capacity	10 million barrels, extracting 20 million barrels each year
Cost of Extraction per barrel	$30
Forward Price of Oil in next 5 years	$40 per barrel with constant 2% increase each year
Tax rate	30%

(1 mark revenue, 1 mark processing cost, 1 mark depreciation, 1 mark EBIT, 1 marks NOPAT, 1 mark adding back depreciation, 2 marks NPV, 1 mark for investment decision and 1 mark for the investment decision reason)