🔒
Simple Well Economics: NPV & Payout
Inside this lesson
- Explain the time value of money and how a future cash flow is discounted to present value using a discount rate
- Define net present value (NPV) as the sum of discounted net cash flows minus the up-front investment, and state that a positive NPV clears the hurdle
- Define payout (payback) as the time to recover the initial investment from net cash flow
- Solve a simple NPV and payout problem, and recognise that these figures are illustrative teaching examples, not investment advice
Unlock the full Petroleum Engineering course
- Every paid lesson in this course — one purchase.
- Interactive simulators for well-log interpretation, reservoir material balance, and nodal analysis.
One-time purchase — see options on the next page.
or unlock everything with all-accessNot ready yet? See the free preview lessons across the course.
⚖️
Educational content covering topics typical of an undergraduate petroleum-engineering curriculum. Not a substitute for accredited coursework, and not suitable for real well, reservoir, or field decisions without review by a licensed professional engineer. Well-control content is conceptual awareness only and is not IWCF/IADC training. References to reserves or resource classifications are descriptive context only, not regulatory disclosure or booking guidance.