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\mbox{NPV} = - \mbox{I}_0 + \sum_{i=1}^n \frac{\mbox{FCF}_i}{(1+r)^i}
\mbox{FCF}_i = \left( \mbox{NETBACK}_i - \mbox{COST_i} \right) \cdot \left( 1 - \mbox{TAX}_{\mbox{income}} \right)
\mbox{NETBACK}_i = \mbox{REV}_i \cdot \left( 1- \mbox{TAX}_{\mbox{sls}} \right)
\mbox{REV}_i = \mbox{q}_i \cdot \mbox{PRICE/q}
\mbox{COST}_i = \mbox{COGS}_i + \mbox{OPEX}_i
\mbox{COGS}_i = \mbox{q}_{L,i}^{\uparrow} \cdot \mbox{COST/qL} + \mbox{q}_{O,i}^{\uparrow} \cdot \mbox{COST/qO}+ \mbox{q}_{G,i}^{\uparrow} \cdot \mbox{COST/qG} + \mbox{q}_{W,i}^{\uparrow} \cdot \mbox{COST/qW} + \mbox{q}_{WI,i}^{\downarrow} \cdot \mbox{COST/qWI}


See also


Economics / Investment / Financial Investment / Financial Investment Metrics / Net Present Value (NPV)

Business / Business Administration / Financial Management / Business Asset

Petroleum Industry (Oil & Gas Industry) / Upstream /  Production / Field Development Plan / Petroleum Asset Economics

Petroleum Asset Summary ][ Petroleum Asset PI ]






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