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2003 Course Petroleum Economics

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Total No. of Questions : 06] [Total No. of Pages : 4 [3864]-351 P1311 B.E. (Petroleum Engineering) PETROLEUM ECONOMICS (2003 Course) Time : 3 Hours] [Max. Marks :100 Instructions to the candidates: 1) Solve any two questions each from section I and section II. 2) Answers to the questions of both the sections should be written in separate answer books. 3) Use graph paper wherever necessary. 4) Assume additional data if required. SECTION - I Q1) a) b) List the projects which would be acceptable under Payout Period (PP), Actual Value Profit / Investment Ratio (AVI), and Net Present Value (NPV) at 12%. If a budget of $ 2000 M is available for investment, which two projects would be recommended by using above investment yardsticks? [15] 6 Table 1: Net Cash Flow, in $ M (M=10 $) Year A B C D E 0 -1000 -1000 -1000 -1000 -1000 1 600 700 210 10 900 2 400 500 210 20 200 3 300 200 210 50 100 4 200 100 210 100 50 5 50 50 210 200 50 6 20 10 210 300 10 7 10 10 210 400 10 8 10 10 210 500 10 9 5 10 210 500 0 10 5 10 210 400 0 Explain Exponential Decline and Hyperbolic Decline models with suitable diagrams. [10] P.T.O.

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