Net Present Value

Nowadays, many companies cannot see the digital investment that plays a main role in the IR 4.0. Therefore, this study is investigating the study of investment as plays a critical role in an analytical activity to assess the benefits and costs of an investment and can be used as an investment justification. Traditional investment appraisal uses a financial approach where the benefits and costs are quantified in a certain amount of value for money and then compared in value. Moreover, this study is revealed the fruitful outcomes because revealed the investment valuation method with NPV (Net Present Value) and ROV (Real Option Valuation). ROV is an alternative to financial valuation. Seeding from the same philosophy as Financial Option, ROV has advantages in handling the flexibility, risk, and volatility that may occur from an investment. Thus, ROV is considered more able to appreciate an investment that has these characteristics. Investment appraisal with ROV is better able to appreciate investment than traditional financial methods, as shown by ROV's NPV results in the case of marketing with Loyalty points through email communication as a digital investment that are greater than ordinary NPV. This is because ROV can appreciate flexibility in investments that have choices of investment plans in the future

The economic evaluation of oil and gas projects aims to provide decision-makers with a comprehensive estimate of costs and benefits. This study examines the impact of macroeconomic variables, such as interest and inflation rates, on the economic assessment of drilling several gas wells in northeastern Iran. The theoretical framework includes Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). The importance of accurately predicting these variables for economic decision-making by managers and policymakers is clearly established, with their analysis playing a key role in project evaluation. In this study, the planning of activities and analysis of the construction and operational phases of the project were first conducted. The inflation rate was forecasted using the ARIMA model, and an appropriate discount rate was determined. The pricing of gas and condensates, fixed and variable costs, and project revenues were also reviewed. The economic evaluation was performed using COMFAR software, with a sensitivity analysis to examine the impact of changes in key assumptions. The results indicate positive financial metrics for the project under different production rates, discount rates, inflation rates, and various energy prices, confirming the project's economic viability.