WorksheetsPre-Test Project Economics
Total questions: 10
Worksheet time: 8mins
Which project do you choose to invest: (the same total Capex and Opex)
NPV5: $100mn with IRR of 7%
NPV10: $50mn with IRR of 12%
NPV15: $0mn with IRR of 15%
I have no idea, can you please explain?
Net Present Value (NPV) at discount rate of 0% = Net Cash Flow (NCF)
True
False
I do not want to guess, please explain.
Which of the following Cash Flow has the highest NPV10?
Year 1 (25)
Year 2 (5)
Year 3 (0)
Total (30)
Year 1 (0)
Year 2 (5)
Year 3 (26)
Total (31)
Year 1 (10)
Year 2 (15)
Year 3 (5)
Total (30)
Not sure, please explain
If there is a project where the contractor's cash flow is always positive, what is the impact on IRR:
IRR is positive
IRR is negative
IRR cannot be calculated
IRR is 0%
Block MLC PSC Cost Recovery has gross revenue of $100mn and costs of $50mn, its net (entitlement) revenue and net costs based on 40% Working Interest are:
Revenue = $40mn and Costs = $20mn
Revenue < $40mn and Costs = $20mn
Revenue = $40mn and Costs <$20mn
Not sure, please explain
Assuming an 85/15 split after tax (Govt/Contr) and Equity to be split is $500mn, additional $20mn cost recoverable as a result of higher Opex will lower Contractor NCF by:
$3mn
$17mn
$20mn
Not sure, please explain
Under the Indonesia PSC fiscal regime, higher oil price impact to net production entitlement for Contractor is:
Higher
Lower
No impact
Not sure, please explain
Impact to Contractor NCF on $100mn Cost reimbursement and $100mn Cost Recovery are the same. Assuming ETBS > $100mn.
True
False
Not sure, please explain
Government Take in percentage (e.g. 15%) is actually the rate of return for the Government.
True
False
No idea, please enlighten
If discount rate is 10%, which project will give the highest IRR?
Project A
Project B
Project C
Project A, B, & C have the same IRR
