A New Tool In Financial Decision-Making Under Uncertainty

This new tool can be used for the proper assessment of the potential economic wealth of any risky capital project. It does provide an unambiguous recommendation of the type "go or no go" to the decision-maker simply by comparing two different ratios profit/investment. One ratio determines the minimum value required to at least break-even while the other measures a probable value based on the asymptotic theory of statistical extremes (weakest link concept). Its application is briefly illustrated by means of an underground gold mine project, an oil sands mine project and a poly-metallic open pit project.