Question: Please answer fast and show step by steps. Do not use Excel . 4. Calculate Net Cash Flow after tax using the Royalty Tax cash
Please answer fast and show step by steps. Do not use Excel
. 4. Calculate Net Cash Flow after tax using the Royalty Tax cash flow model for an oil property with the following parameters (10 pts): Time Period: 1 year Gross Production: 60,000 bb! Shrinkage: 5% Sales price of oil: $80/661 Net Revenue Interest: 0.70 Your share of state and local taxes: $250,000 Your share of investments during the year $500,000 Your share of operating costs: $50,000 Your share of federal income taxes: $190,000
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