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
To date, Return on Investment (ROI) has been a guiding force in the adoption of commercial LED technology. If a $100 fixture saves $33 each year, the ROI is naturally 33 percent. Read More…
Stanford University has a long history of designing and constructing quality building projects. In continuing this tradition, Stanford seeks to ensure that new and renovated buildings meet student, staff, and faculty needs as effectively and efficiently as possible. To this end, Stanford’s Department of Land and Buildings has outlined a thorough Project Delivery Process (PDP)
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Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs,
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Life-Cycle Cost Benefit Analysis – Template
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Benchmarking is a process where you measure your company’s success against other similar companies to discover if there is a gap in performance that can be closed by improving your performance. Studying other companies can highlight what it takes to enhance your company’s efficiency and become a bigger player in your industry. Read More…
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