Problem: As the manager of exploration for Chieftain Oil & Gas, you are evaluating a new offshore oil recovery module that will recover oil and gas deep in the Gulf of Mexico. The expected cash flows are:
Initial investment $150 Million
Net cash flows years 1 to 5, $20M (Million), $60M, $90M, $60M, $30M, then well depleted, no salvage value, Compute: Payback period, Present worth (The MARR is 15%), IRR, NPVI for this project.