Method for determining the current value of a future development

摘要

A method for determining the current value of a future development is disclosed. The method includes receiving a set of data corresponding to a plurality of variables associated with the future development and converting the set of data to a financial gain distributed over an estimated production period. The method further includes calculating a net present value of the distributed financial gain to the start of production and risk reducing the net present value of the distributed financial gain according to risks associated with the future development. The method also includes determining a distributed cost of the future development and calculating a net present value of the distributed cost and the risk reduced net present value of the distributed financial gain of the future development.