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Formula 7.25

Net present value

Input(s)

$\mathrm{t}$: the time of cash flow

i: discount rate

$R_{t}$: the net cash flow

Output(s)

NPV : Net PresentValue

Formula(s)

$$ N P V=\frac{R_{t}}{(1+i)^{\wedge} t} $$

Reference(s)

Wikipedia.org.


Related

Acceptable reliability level

Additional production estimation with new wells

Annual gross revenue after royalties and wellhead taxes

Annuity from future value

Annuity from present value

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