Project #54754 - Exxon-Mobil Case Study

 

Exxon-Mobil Case Instructions

1.      Provide an overview (synopsis) of the case. This is the case introduction that provides relevant background information (case situation). 

2.      Include a discussion of the start-up costs and expected cash flows from the project. Please incorporate future oil prices in the discussion.

3.      Estimate discount rates for the project using Lessard method (page 10, Appendix 2). Use data given in Table 2 (page 4).

4.      Compute NPVs using the discount rate from step 3.

5.      Compute IRR and compare against the discount rate from step 3.

6.      Explain your findings.

7.      Since oil prices may not remain at $58, and discount rates can vary, please provide a sensitivity analysis of NPV (i.e., compute NPV) for oil prices from $20 to $90 with a $5 increment and different discount rates that you computed. Your will need to redo the cash flows using $20, $25, etc. oil prices and compute NPVs for these oil prices using each of the six discount rates that you have computed. It will be less tedious if you use Excel.

8.      Provide recommendations and wrap up.

 

 

Subject General
Due By (Pacific Time) 02/06/2015 12:00 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy