Q1) One of the petroleum company is to develop their investment in on existing wells, they have 2 projects are available to investment as part of situation existing petroleum wells the data of each project as in the table: Project A:r=8% cash flow (CF) Project B: r=8% cash flow (CF) year -2120 -2500 1 600 900 2 820 1000 980 1150 The main Requirements : A) Accounting of NPV for the specific mentioned r for each projects as mentioned above? B) Find out IRR results fom range of its percentages from (5%-20%)? Find the final results for at least three different types of percentage for each project? C) based on your calculations which one of your IRR (%) which is making NPV is very close of Zero. D) Drawing all the above results between IRR and NPVS for both projects? E) Evaluating which one of the project within more benefits of investment according to all calculation procedure?

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Petroleum Engineering Economics
Q1) One of the petroleum company is to develop their investment in on existing
wells, they have 2 projects are available to investment as part of situation existing
petroleum wells the data of each project as in the table:
Project A:r=8%
cash flow (CF)
Project B: r=8%
cash flow (CF)
year
-2120
-2500
1
600
900
2
820
1000
3
980
1150
The main Requirements :
A) Accounting of NPV for the specific mentioned r for each projects as mentioned above?
B) Find out IRR results fom range of its percentages from (5%-20%)? Find the final results
for at least three different types of percentage for each project?
C) based on your calculations which one of your IRR (%) which is making NPV is very close
of Zero.
D) Drawing all the above results between IRR and NPVS for both projects?
E) Evaluating which one of the project within more benefits of investment according to
all calculation procedure?
Transcribed Image Text:Q1) One of the petroleum company is to develop their investment in on existing wells, they have 2 projects are available to investment as part of situation existing petroleum wells the data of each project as in the table: Project A:r=8% cash flow (CF) Project B: r=8% cash flow (CF) year -2120 -2500 1 600 900 2 820 1000 3 980 1150 The main Requirements : A) Accounting of NPV for the specific mentioned r for each projects as mentioned above? B) Find out IRR results fom range of its percentages from (5%-20%)? Find the final results for at least three different types of percentage for each project? C) based on your calculations which one of your IRR (%) which is making NPV is very close of Zero. D) Drawing all the above results between IRR and NPVS for both projects? E) Evaluating which one of the project within more benefits of investment according to all calculation procedure?
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