Improving Project Selection Using Expected Net Present Value Analysis
John J. Flaig
Abstract
John J. Flaig
Abstract
Expected net present values analysis offers the practitioner a more realistic approach to project evaluation and selection. It does this by addressing three key issues: (1) it includes the key process input variables, at both their pre- and postproject completion states; (2) it offers a subjective probabilistic model of the expected project completion timeline; and (3) it uses the time value of money to measure benefits and cost in current dollars.
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Expected net present values analysis offers the practitioner a more realistic approach to project evaluation and selection. It does this by addressing three key issues: (1) it includes the key process input variables, at both their pre- and postproject completion states; (2) it offers a subjective probabilistic model of the expected project completion timeline; and (3) it uses the time value of money to measure benefits and cost in current dollars.
Key concepts: Timeline, Net present value, Key (lock), Selection (genetic algorithm), Present value, Computer science, Value (mathematics), Probabilistic logic