You are just been hired as a chief petroleum economist in the Statoil Company who owns and operates Merata field located in ultra-deep-water, close to the coast of Angola. Now the managers of the Statoil Company, which has the right to develop the project, ask you to estimate the financial viability of the project to facilitate their decision on whether to invest in the project at all. All the necessary information to help you appraise the project is presented in the Table 2025 30.547 11 149.65 5 65 45 150 Table 1: Financial Analysis data of Purchased FPSO Development Concept Yeer 2020 2021 2022 2031 2014 Daily Production, thousand 0 50 372 30.547 90.214 71.457 horrela per day Number of operating days 365 365 365 365 11.149.65 16 185.78 32.928.11 26.081 Annual Production, barrels 5 0 0 5 Avenge Oil Price Sbarrel 65 65 65 65 Total Revenue, SMM Operating Expenditures, 45 74 132 104 SMM Transportation Expenditures SMM Capital Expenditures, SMM 450 900 900 300 300 Depreciation Allow.ces, 600.00 600.00 600 00 600.00 SMM Taxable income, SMM -450 -820 378 1 109 691 Annual Corporate Income Tax tax rale-219) 0 0 233 145 Charges, SMM Annual Reality Charges 72 120 214 170 (1046). SMM Annual Local & Other 14 24 charges (295. SMM 349 Total Paid Taxes SMM 87 Total Annual Net Cash Flows, SMM 600 DO -70 0 72 14 R7 lo Use the information in Tablel to appraise the project based on the following: A. Compute the total annual cash inflow, annual cash outflow and the Total Annual Net Cash Flows of the project. (3 marks) B. Calculate the Discounted NPV at 10% and based on that, what advise can you provide to management on whether not to develop the project? (6 marks) C. Given that the Statoil Company has set itself a Minimum Acceptable Rate of Return of 10%, should it invest in the project? Please provide your estimations and a short discussion of your results, using discounted rates of 10% and 19.5% in calculating the internal rate of retum of the project. (6 points) D. Calculate the payback period of the project at 10% discount rate interest rate). What recommendation can you make to management based on the payback appraisal approach? (5 marks E: If the oil price reduces to 26 dollars per barrel, would your decision based on question (A) changed? Provide all calculations to support your answer (5 marks) You are just been hired as a chief petroleum economist in the Statoil Company who owns and operates Merata field located in ultra-deep-water, close to the coast of Angola. Now the managers of the Statoil Company, which has the right to develop the project, ask you to estimate the financial viability of the project to facilitate their decision on whether to invest in the project at all. All the necessary information to help you appraise the project is presented in the Table 2025 30.547 11 149.65 5 65 45 150 Table 1: Financial Analysis data of Purchased FPSO Development Concept Yeer 2020 2021 2022 2031 2014 Daily Production, thousand 0 50 372 30.547 90.214 71.457 horrela per day Number of operating days 365 365 365 365 11.149.65 16 185.78 32.928.11 26.081 Annual Production, barrels 5 0 0 5 Avenge Oil Price Sbarrel 65 65 65 65 Total Revenue, SMM Operating Expenditures, 45 74 132 104 SMM Transportation Expenditures SMM Capital Expenditures, SMM 450 900 900 300 300 Depreciation Allow.ces, 600.00 600.00 600 00 600.00 SMM Taxable income, SMM -450 -820 378 1 109 691 Annual Corporate Income Tax tax rale-219) 0 0 233 145 Charges, SMM Annual Reality Charges 72 120 214 170 (1046). SMM Annual Local & Other 14 24 charges (295. SMM 349 Total Paid Taxes SMM 87 Total Annual Net Cash Flows, SMM 600 DO -70 0 72 14 R7 lo Use the information in Tablel to appraise the project based on the following: A. Compute the total annual cash inflow, annual cash outflow and the Total Annual Net Cash Flows of the project. (3 marks) B. Calculate the Discounted NPV at 10% and based on that, what advise can you provide to management on whether not to develop the project? (6 marks) C. Given that the Statoil Company has set itself a Minimum Acceptable Rate of Return of 10%, should it invest in the project? Please provide your estimations and a short discussion of your results, using discounted rates of 10% and 19.5% in calculating the internal rate of retum of the project. (6 points) D. Calculate the payback period of the project at 10% discount rate interest rate). What recommendation can you make to management based on the payback appraisal approach? (5 marks E: If the oil price reduces to 26 dollars per barrel, would your decision based on question (A) changed? Provide all calculations to support your