Question: Kindly please solve Question (ii) for me: Here is the data provided for the question: And here is Question (ii) : A B E F

Kindly please solve Question (ii) for me:

Here is the data provided for the question:

Kindly please solve Question (ii) for me: Here is the data provided

And here is Question (ii):

for the question: And here is Question (ii): A B E F

A B E F G j K L C D Brent Crude (USD) Time 1 Time 2 H Barrels (Thousands) Time 1 Time 2 Time 0 Time 0 1 2 3 4 5 Time 3 $ 149.82 Time 3 300 $ 130.17 200 $ 112.21 $ 126.13 100 125 $ 76.18 $ 106.60 0 50 $ 68.56 $ 105.54 20 25 $ 66.09 -2 $ 63.45 -8 rf 2.50% 6 7 8 9 10 11 12 13 14 15 16 17 18 You are in the process of conducting a valuation of a long-term capital project on behalf of Sasol where they intend on investing in a new oil refinery. Based on the data provided and a project cost of $15 million: i. Calculate the NPV of the project. ii. If oil prices decrease for two consecutive years in years one and two), Sasol would be able to cancel the project for 1% of the total project cost (the cost of cancelling the project would take place in year two). Calculate the value of the option to cancel the project

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