For an oil field, 3 different field development plans are under consideration for the next 10 years. Annual oil production forecast (MSTB) for each plan are given below: - Investment requirements (capital expenses) and operating costs for these plans and other considerations are given in the table below, with other economic constants. - All capital investments will be made at the beginning of the project (Year 0). - Operating costs (OC) only for the 1st year of operation are given below. These costs are expected to escalate by 10% in each subsequent year, i.e.: OCn=OCn1(1+i) - Oil price is assumed to remain stable during the next 10 years. - Estimated life of all tangible items is 10 years and the salvage value in depreciation calculations can be taken as 0. Construct the cash-flow table for all plans to obtain the Net Cash Flow Before Tax (Column 12) and After Tax (Column 14) and show the following: - Cash-flow table with all values (similar to the format given in the handout) - Depreciation allowance calculations (a sample calculation for a given year) - Depletion allowance calculations (a sample calculation for a given year) NOTE: The same cash-flow model will be used in some parts of upcoming homeworks. The spreadsheet must be built in a way that calculations refer to all input parameters (constants). Save your spreadsheet and correct your mistakes accordingly after the solutions are uploaded. Future homeworks will require manipulation of input parameters for the same cash-flow model. For an oil field, 3 different field development plans are under consideration for the next 10 years. Annual oil production forecast (MSTB) for each plan are given below: - Investment requirements (capital expenses) and operating costs for these plans and other considerations are given in the table below, with other economic constants. - All capital investments will be made at the beginning of the project (Year 0). - Operating costs (OC) only for the 1st year of operation are given below. These costs are expected to escalate by 10% in each subsequent year, i.e.: OCn=OCn1(1+i) - Oil price is assumed to remain stable during the next 10 years. - Estimated life of all tangible items is 10 years and the salvage value in depreciation calculations can be taken as 0. Construct the cash-flow table for all plans to obtain the Net Cash Flow Before Tax (Column 12) and After Tax (Column 14) and show the following: - Cash-flow table with all values (similar to the format given in the handout) - Depreciation allowance calculations (a sample calculation for a given year) - Depletion allowance calculations (a sample calculation for a given year) NOTE: The same cash-flow model will be used in some parts of upcoming homeworks. The spreadsheet must be built in a way that calculations refer to all input parameters (constants). Save your spreadsheet and correct your mistakes accordingly after the solutions are uploaded. Future homeworks will require manipulation of input parameters for the same cash-flow model