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can someone do this in similar way that my teacher did with an other problem by showing timeline and npv using calculator not excel i have attached the picture. the answer to the problem is D please expain by using npv timeline and the same way possible as my professor did

Ryan Isaacs, CEO of International Exploration, Inc. is deciding how to approach a particular oil well project. He has decided to either drill in one year after seismic information is received on the area OR in- two years after a nearby well is completed. The seismic information has a 75% chance of being positive and 25% chance of being unclear. In one year, the cost to drill the well would be $900,000 with 3 years of estimated cash flows of $450,000 if the seismic information is positive, and $250,000 if it is unclear. It is believed that the nearby well has a 75% chance of being good and 25% chance of being mediocre. If good, the cash flows will be $500,000 at the end of each of the next 3 years, and $275,000 per year if mediocre. The cost of drilling the well in 2 years is expected to be $950,000. Assume a discount rate of 10 percent. What should the company do? (Round to the nearest dollar throughout.) a. Wait 1 year since the expected NPV (in today's dollars) is $149,375 compared to the NPV of $141,900 for drilling in 2 years. b. Wait 1 year since the expected NPV (in today's dollars) is $190,566 compared to the NPV of $181,876 for drilling in 2 years. Wait 2 years since the expected NPV (in today's dollars) is $181,876 compared to the NPV of $179,225 for drilling in 1 year. d. Wait 2 years since the expected NPV (in today's dollars) is $181,876 compared to the NPV of $149,375 for drilling in 1 year. e. None of the above Ryan Isaacs, CEO of International Exploration, Inc. is deciding how to approach a particular oil well project. He has decided to either drill in one year after seismic information is received on the area OR in two years after a nearby well is completed. The seismic information has a 75% chance of being positive and 25% chance of being unclear. In one year, the cost to drill the well would be $900,000 with 3 years of estimated cash flows of $450,000 if the seismic information is positive, and $250,000 if it is unclear. It is believed that the nearby well has a 75% chance of being good and 25% chance of being mediocre. If good, the cash flows will be $500,000 at the end of each of the next 3 years, and $275,000 per year if mediocre. The cost of drilling the well in 2 years is expected to be $950,000. Assume a discount rate of 10 percent. What should the company do? (Round to the nearest dollar throughout.) a. Wait 1 year since the expected NPV (in today's dollars) is $149,375 compared to the NPV of $141,900 for drilling in 2 years. b. Wait 1 year since the expected NPV (in today's dollars) is $190,566 compared to the NPV of $181,876 for drilling in 2 years. c. Wait 2 years since the expected NPV (in today's dollars) is $181.876 compared to the NPV of $179,225 for drilling in 1 year. d. Wait 2 years since the expected NPV (in today's dollars) is $181,876 compared to the NPV of $149,375 for drilling in 1 year. e. None of the above Kevin Weber, CFO of Weber Exploration, Inc. is deciding how to approach a particular oil well project. If the company drills today, the project would cost $650,000 today, and would provide estimated cash flows of $100,000 per year at the end of each of the next 3 years and a one-time cash outflow of $25,000 to restore the land to normal at the end of 3 years. However, if the company waits a year before drilling. the company would have more geological information regarding the well's possibilities. The company estimates that if it waits a year, the project would cost $700,000 and would have a 70 percent chance of having net cash flows of $500,000 per year for 3 years, and a 30 percent chance of having net cash flows of only $325,000 per year for 3 years, and in either case, there would be a one-time cash outflow of $25,000 to restore the land to normal at the end of the 3 years. Assume a discount rate of 15 percent. What should the company do? a. Wait one year since the expected NPV (in today's dollars) of waiting is $7,844,063 more than the NPV of going ahead and drilling today. Wait one year since the expected NPV (in today's dollars) of waiting is $18,630,758 more than the NPV of going ahead and drilling today. c. Go ahead and drill now since the NPV of drilling today is $15,128,084 more than the expected NPV (in today's dollars) of waiting a year. d. Go ahead and drill now since the NPV of drilling today is $9,076,221 more than the expected NPV (in today's dollars) of waiting a year. c. Go ahead and drill now since the NPV of drilling today is $13,924,656 more than the expected NPV (in today's dollars) of waiting a year, npr (15,- 650000, mor, 40000, 335201) pw (5,0. f. cod] ,com, Como, - 344,717 Daardie na mu (15,23 -0 , 30) 30 tak ,515 , 1175 22.270 K-152 t ous drilt: Nor-6 15 year. 10,064 Laore than the expected NPV u. Go ahead and drill now since the NPV of drilling today is $9,076,221 more than the expected NPV (in today's dollars) of waiting a year. e. Go ahead and drill now since the NPV of drilling today is $13,924,656 more than the expected NPV (in today's dollars) of waiting a year. Lille dan taking over de he m or Ciss- escoco, fuese, uoco, 360p) = 246,952 riu (70k) Saok sok & Dauidrics : NPS=0 soos mpr (15,0. -700000, 500.000, sodo, 47500d J - 349,717 7) 325% 33% . npr lis, ,{-700006, 525065, 125000, 30end) = 22.270 K =153 -Don't drill Nor=0 Now 246,852 wart vs..7/364,717) 265,48 - 246,852 18,630.84 aduty of waiting. .3(22,270) 265,482

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