NPV Cost Avoidance and Savings

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

NPV Cost Avoidance and Savings
Akshay, Student (University), Member
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....Sign up

Special Interest Group Leader

Interested? Sign up for free.

Net Present Value (NPV)
Best Practices


    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.0 - Last updated: 26-6-2019. All names of their owners.