NPV Upside Potential

NPV Upside Potential is the process of generating and analyzing scenarios to measure the impact of each constraint on the project’s net present value (NPV), from the Super Best Case to a detailed setup. Measuring the impact of each constraint on the NPV is important to assess the financial impact and ensure the project’s viability under different scenarios and conditions. Each constraint can have a significant impact on the project’s NPV, and it is crucial to understand how they affect the project’s financial performance.

By evaluating the impact of each constraint on the project’s NPV, it is possible to identify financial bottlenecks and opportunities for improvement, as well as prioritize problem resolution. This can result in better resource allocation and cost reduction, enhancing the project’s profitability and viability.

In NPV Upside Potential, scenarios are created that sequentially incorporate each constraint of the project, allowing users to have a comprehensive view of the impact of each constraint on the project’s performance. In case more efficiency is needed, the resulting surface obtained on the Constraints Validation or in Best Case refinements could be used as Restrict Mining in the last interval, which might reduce the complexity and the runtime.