Dear Reader: Time has value. And as such, a part of the analysis as to what the quality of an LED lighting system investment would is to determine what the return on that investment would be over time. Because dollars invested today are not available for other investments once they’ve been deployed (spent) on a […]
Factor In the Value of Time with Internal Rate of Return Read More »
The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it is the expected compound annual rate of return that will be earned on a project or investment. In the example below, an initial investment of $50 has a 22% IRR. That is
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Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business, investment security, capital project, new venture, cost reduction program, and
Life-Cycle Cost Benefit Analysis – Template
Life-Cycle Cost Benefit Analysis Read More »