Minimum profit ratio per a risky job

Input(s)

y: Wealth Position that could be opened in a certain Probability (\$)

$y_{o}$: Initial Wealth of the Company (\$)

$n$: Total number of Independent Risky Jobs (dimensionless)

$C$: Dry-well Drilling Cost in Initial Investment (\$)

Output(s)

W: Minimum Profit Ratio per a Risky Job - Minimum Profit/Investment Ratio (fraction)

Formula(s)

$$ \mathrm{W}=\frac{\mathrm{y}-\mathrm{y}_{\mathrm{o}}}{\mathrm{n} \cdot \mathrm{C}} $$

Reference(s)

Serpen, U., Petroleum Economics, Course Notes, ITU Petroleum and Natural Gas Engineering, Istanbul, Turkey, (2008) Page: 92.