Present Value Net Savings (PVNS)


Present Value Net Savings (PVNS) :

A method for finding the economically efficient choice among investment alternatives. It measures the net savings from investing in a given alternative instead of investing in the foregone opportunity (e.g., some other alternative or the base case). The PVNS for a given alternative, Aj, vis-à-vis the base case, A0, may be expressed as: PVNSj: 0 = LCC0 - LCC

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