NPv

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May 21, 2014 at 7:59 pm #169978
hasanali95
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In the npv calculation,what do we do with the opportunity costs(of for e.g labor being unable to workon another project etc)?
May 21, 2014 at 8:24 pm #169986
John Moffat
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Opportunity costs (i.e. lost income ) are treated just like direct costs. They are included in the cash flows.

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