Budget Benefits of Using NPV Life Cycle Cost Analysis

Fleet Decisions

Truckinginfo.com - November 1, 2011

The net present val­ue (NPV) life cycle cost analy­sis is one of the best finan­cial analy­sis tools avail­able to fleet man­agers for decid­ing whether to repair or replace a vehi­cle. The NPV shows the total true cost of each alter­na­tive. An after-tax NPV life-cycle cost analy­sis address­es the time val­ue of mon­ey and the impact on tax­es.