Text Size:
A | A

Investing Strategies: Mulling metrics

Text Size: A | A
RODNEY SCHULZ
August 13, 2012

Oil and gas investors, public and private, corporate and personal, use a range of metrics to evaluate the projected performance of the investments they consider. These metrics include both intuitive and analytical methods.

Two easy-to-use and popular analytical financial evaluation methods are net present value (NPV) and internal rate of return (IRR).

The underlying basis for calculating NPV is that a dollar today is worth more than a dollar tomorrow. Present dollars in hand are worth more than future dollars that are both uncertain and yet-to-be-realized. The NPV calculation is ...


Already a subscriber? Log In
Password:
 
Does your company have a site license? Inquire here
Already a print subscriber? Upgrade your magazine subscription