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Unformatted text preview: ( 29 1 1 discount factor interest rate fraction year t DF i DF i t = + = = = The discounted value of the net revenue in a given year is ( 29 ( 29 ( 29 present value of the net income $ net revenue for a given year $ discount factor for the given year PV NI DF PV NI DF = = = = For the first year your table should start out as follows. Year Cumulative Oil Gross Oil Gross Gas Net Reveue LOE Investment Profit/Loss Present Value Cumulative Cumulative STB STB/year MScf/year $ $ $ $ $ Profit/Loss $ Present Value $ 1 78,512 78,512 23,554 4,439,846 60,000 4,000,000 379,846 316,538 379,846 316,538...
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- Spring '08