5. The NPV Formula Net Present Value of a $10,000 Investment Discounted at 8% Period (Cost)/Revenue NPV Initial Investment ($10,000) ($10,000) 1 $5,000 $4,630 2 $5,000 $4,287 3 $5,000 $3,969 4 $5,000 $3,675 5 $5,000 $3,403 Total NPV $9,961
6.
Editor's Notes
Welcome to our presentation on how to apply reliability statistics to improve asset management. This is the first in a continuing series of presentations designed to increase your knowledge about the use of statistical analysis to help improve performance. In this presentation we will define a few terms and discuss some commonly used reliability measures.