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.