Project Duration

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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October 15, 2016 at 1:00 pm #343339
felixb1
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a quick one here. Ive seen project duration calculated as a percentage of the NPV for each inflow and also just simply multiplying it by the year it relates too (ignoring percentage)
both have different answers I believe which is correct.

(the question it uses different techniques is Jonas chemials and CD for your ref)

thanks
October 15, 2016 at 5:11 pm #343361
John Moffat
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But either approach gives the same answer.

Multiplying by the PV’s and then dividing by the total PV, is the same as multiplying by the PV as a % of the total PV.
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