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NPV Enhancement

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NPV Enhancement is the process of creating scenarios to conduct extensive searches for solutions with higher net present value (NPV) values and similar violations, while considering minimum requirements for project constraints. Scenarios are created that gradually modify constraints from desirable requirements to minimum requirements, with the goal of increasing project profitability.

Example

Consider the initial scenario and respective decision tree built for a NPV Enhancement process. The constraints in green (production capacities, geometric constraints, and average CU) are considered for modifications, from desirable requirements to minimum requirements, in order to identify solutions with higher net present value (NPV).

Results show a high variation in NPV while the production remains in its limits. Hence, it shows that it is possible to achieve higher NPVs when employing minimum requirements defined by the user.

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