New method for evaluating oil projects leads to more accurate results.
The article calculates the return rates for oil projects using a modified method called the reinvestment rate of return (RRR). This method considers reinvesting cash flows at a fixed rate. By using RRR instead of the traditional internal rate of return (IRR), a more accurate estimate of project results can be obtained. The RRR helps in making better decisions about accepting or rejecting new oil projects.