This study analyszes contract terms for oil exploration in five Pacific Rim countries: Australia , China, Indonesia, Brunei, and Malaysia and then develops probabl e cash flows based on varying opil prices. The cash fl ow amounts are eva 1 uated using the tools of financial analysis and then compared to determine which contract terms provide the i nvestor with the most attractive financial returns. Discounted cash flow amounts and internal rates of return differed widely among the countries analyzed. Australia and China provide the investor with the best probable financial results. Varying oil prices show a linear relationship with anticipated financial results and demonstrate the effect of volatile world oil prives on decision making.Business Administratio
