Net Present Value of Changes in Ketchikan Economy Sample Clauses

Net Present Value of Changes in Ketchikan Economy. Net present value (NPV) is a method of comparing alternatives that have different timing of expenditures and benefits, and to incorporate the time value of such expenditures and benefits. Net present value can be presented from different perspectives. For example, life cycle costs which show the total expenditures for construction and operations and maintenance of a project, less the remaining equity or salvage value of the facilities at the end of the study period, are often summarized as a net present value in consideration of the different timing of the stream of expenditures. Table 2-16 shows the net present value of the expenditures and remaining equity for the life cycle of the alternatives. Greater net present values represent larger costs to the funding agencies over the life of the project.
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