July 31, 2013
Chapter 4 – Present Worth
1) Do you think that small organizations rely on present worth analysis as well, or is this type of
analysis important only for extremely large firms such as ConocoPhillips?
2) The statement about the calculations being based on estimates of proved reserves suggests to
stakeholders that this is a somewhat volatile business. What measures can an engineering
economist take to ensure that a rigorous analysis is performed to instill investor confidence?
3) Are you surprised to see the detailed explanation of how the numbers were calculated?
4) In what other parts of their business might ConocoPhillips rely on present worth analysis?