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Break-Even Analysis

Like the formula for Net Present Value (NPV) explored in an earlier post, break-even analysis is based on a time series of cash inflows and outflows. It is simply the time required for the discounted cash inflows to equal the

Posted in Break-Even Analysis, Business Case Analysis, NPV, Project Selection, ROI

Let’s Consider Time: Net Present Value (NPV)

As I mentioned in my prior post, the traditional ROI formula does not consider time. But in weighing the costs and benefits of a project, we must take into account the fact that neither costs nor benefits materialize instantaneously, each

Posted in Business Case Analysis, NPV, Project Selection, ROI