A simpler way of determining almost the same thing would be to guestimate how many chips you think you can extract from your opponent - on average - if you flop your set. Sometimes you'll stack him, sometimes you'll get 0... but on AVERAGE, do you think you can get 8 times the amount you need to put in the pot right now in order to see a flop? If so, go for it.
Also, for simplicity sake, we have all been ignoring reverse implied odds too, but keep in mind that happens. Just because you flop a set doesn't mean you're going to win the hand.
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