Most energy saving proposals require the investment of capital to accomplish them. By investing today in energy conservation, yearly operating dollars over the life of the investment will be saved. A dollar in hand today is more valuable than one to be received at some time in the future. For this reason, a time value must be placed on all cash flows into and out of the company.
Money transactions are thought of as a cash flow to or from a company. Investment decisions also take into account alternate investment opportunities and the minimum return on the investment. In order to compute the rate of return on an investment, it is necessary to find the interest rate which equates payments outcoming and incoming, present and future. The method used to find the rate of return is referred to as discounted cash flow.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.