A Comparison of Oil Project NPV's in the North Sea Obtained using the Weighted Average Cost of Capital Discounting Method and a Modern Asset Pricing Method.
This paper examines the difference in the net present values (NPV's) of North sea oil projects obtained using discounted cashflow methods based on the Weighted Average Cost of Capital (WACC) and a Modern Asset Pricing (MAP) method (Laughton and Jacoby, 1993; Jacoby and Laughton, 1992).
L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels ; C00 - Mathematical and Quantitative Methods. General ; Q30 - Nonrenewable Resources and Conservation. General