Present worth expectation for a risky job
Input(s)
\(\overline{X_{A}}\): Present Values of Discounted Probable Outcomes that includes all Costs except Initial Speculative Cost ($)
\(C\): Dry Well Drilling Cost in Initial Investment ($)
Output(s)
\(X_{E}\): Present Worth Expectation per a Risky Job ($)
Formula(s)
\[
\mathrm{X}_{\mathrm{E}}=\overline{\mathrm{X}_{\mathrm{A}}}-\mathrm{C}
\]
Reference(s)
Serpen, U., Petroleum Economics, Course Notes, ITU Petroleum and Natural Gas Engineering, Istanbul, Turkey, (2008) Page: 92.