 # More Complex NPV Comparison: Interrelated Projects  16 Rob, Australia

More Complex NPV Comparison: Interrelated Projects

How would I compare 3 projects - two have an NPV = \$500,000 (over 9 years mixed stream of inflows and 20 years annuity, respectively) and one which is a lump of \$490,000 cash right now?

Rating   0 Michel de Baar

NPV Comparison

If a project has a positive NPV, this means that the project has already returned the discount rate (when NPV is 0, the discount rate is already returned) and if you get additional NET funds out of the project, it seems to me more interesting to go for a project with a positive NPV and on top of it is even higher (not much) than the cash payment. Seems to me like you would have to choose all the project(s). Leave a comment

 More on Net Present Value (NPV):
 Discussion Topics Re-evaluating an investment decision Operating Cash Flows Does the Net Present Value (NPV) calculation uses cash inflows or profits? Choosing between Investments Using a Comparison of NPVs 👀 More Complex NPV Comparison: Interrelated Projects NPV of \$1 Million for a Project Means What WHEN to Invest? Investing at the Right Moment... Calculating NPV with Missing Data Example of Net Present Calculation NPV of Partial Payments How do you Calculate NPV when Initial Investments are Unknown? Missed Interest in NPV NPV assumes Certainty of Cash Flows Calculating Cost per Unit if Zero NPV without any Operating Costs Information Calculating NPV for a Project NPV Cost Avoidance and Savings NPV for Leased Equipment versus Purchased Equipment NPV with a Missing Cash Flow Figure 🔥 NPV with Only Costs & IRR
 Special Interest Group Do you know a lot about Net Present Value (NPV)? Become our SIG Leader More on Net Present Value (NPV):
 Discussion Topics Re-evaluating an investment decision Operating Cash Flows Does the Net Present Value (NPV) calculation uses cash inflows or profits? Choosing between Investments Using a Comparison of NPVs 👀 More Complex NPV Comparison: Interrelated Projects NPV of \$1 Million for a Project Means What WHEN to Invest? Investing at the Right Moment... Calculating NPV with Missing Data Example of Net Present Calculation NPV of Partial Payments How do you Calculate NPV when Initial Investments are Unknown? Missed Interest in NPV NPV assumes Certainty of Cash Flows Calculating Cost per Unit if Zero NPV without any Operating Costs Information Calculating NPV for a Project NPV Cost Avoidance and Savings NPV for Leased Equipment versus Purchased Equipment NPV with a Missing Cash Flow Figure 🔥 NPV with Only Costs & IRR
 Special Interest Group Do you know a lot about Net Present Value (NPV)? Become our SIG Leader