$\begin{array}{l}\displaystyle \mbox{NPV} = - \mbox{I}_0 + \sum_{i=1}^n \frac{\mbox{FCF}_i}{(1+r)^i}\end{array}$

$\begin{array}{l}\displaystyle \mbox{FCF}_i = \left( \mbox{NETBACK}_i - \mbox{COST_i} \right) \cdot \left( 1 - \mbox{TAX}_{\mbox{income}} \right)\end{array}$

$\begin{array}{l}\displaystyle \mbox{NETBACK}_i = \mbox{REV}_i \cdot \left( 1- \mbox{TAX}_{\mbox{sls}} \right)\end{array}$

$\begin{array}{l}\displaystyle \mbox{REV}_i = \mbox{q}_i \cdot \mbox{PRICE/q}\end{array}$

$\begin{array}{l}\displaystyle \mbox{COST}_i = \mbox{COGS}_i + \mbox{OPEX}_i\end{array}$

$\begin{array}{l}\displaystyle \mbox{COGS}_i = \mbox{COGS}_{L,i}^{\uparrow} + \mbox{COGS}_{WI,i}^{\downarrow}\end{array}$

$\begin{array}{l}\displaystyle \mbox{COGS}_{L,i}^{\uparrow} = \mbox{q}_{L,i}^{\uparrow} \cdot \mbox{COST/qL}\end{array}$

$\begin{array}{l}\displaystyle \mbox{COGS}_{WI,i}^{\downarrow} = \mbox{q}_{WI,i}^{\downarrow} \cdot \mbox{COST/qWI}\end{array}$

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See also

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Petroleum Asset NPV

See also