NPV Cost Avoidance and Savings

Net Present Value (NPV)
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Net Present Value (NPV) > Forum > NPV Cost Avoidance and Savings

NPV Cost Avoidance and Savings
Akshay, Student (University)
I evaluating a capital expenditure project where 'stand alone' (location 1) the savings from the investment are low. Due to this, the NPV is low. And thus the project is not feasible. However this project also leads to cost avoidance at another location 2. Hence my question: Are we allowed to sum up the two: 1. Savings at location 1 2. Cost avoidance at location 2 To finally come up with the NPV and IRR of the project? Thanks. (...) Read more? Sign up for free

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Net Present Value (NPV)
Summary
Forum
Calculating NPV for a Project
NPV Cost Avoidance and Savings
🔥NPV with Only Costs & IRR
Best Practices
🥇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
How do you Calculate NPV when Initial Investments are Unknown?
Example of Net Present Calculation
NPV of Partial Payments
Missed Interest in NPV
NPV assumes Certainty of Cash Flows
Calculating Cost per Unit if Zero NPV without any Operating Costs Information
NPV for Leased Equipment versus Purchased Equipment
NPV with a Missing Cash Flow Figure


Net Present Value (NPV)
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