X hits on this document

292 views

0 shares

0 downloads

0 comments

71 / 122

Under conditions of high and medium ZIP+4 usage, high savings, and high multi-line performance, option D (automatic conversion) has about a 5 percent and 11 percent higher NPV, respectively, than option A (single-line OCR). At low ZIP+4 usage, another things being equal, the option D advantage increases to a substantial 134 percent or about $820 million in NPV. At a low savings rate (along with low ZIP+4 usage and high multi-line performance), the relative advantage of option D over A increases further to about 310 percent although the absolute advantage decreases to about $650 million in NPV. Even at low multi-line performance, with low ZIP+4 usage option D has a 53 to 119 percent relative advantage in NPV and a $320 to 250 million absolute advantage in NPV,

at a high and low savings rate, a higher NPV than option A procurement) has a significant low ZIP+4 usage.

respectively. Option H (90-10 split procurement) also has

under almost all conditions.

Option G

although

somewhat

smaller

advantage

over

(50-50 split option A at

The net NPV advantage or disadvantage of options D, G, and H compared to option A is shown in figure 12 for various conditions. Relative as well as absolute comparisons

are included for low ZIP+4 usage. The results clearly show that options D and H have

marginally higher NPV at high substantially higher NPV at low

and medium ZIP+4 usage

ZIP+4

usage.

On

the

under all conditions other hand, option G

and has

a a a

marginally lower NPV than option A at high ZIP+4 low or median multi-line performance, a marginally and high ZIP+4 performance, and a substantially conditions.

usage and median ZIP+4 usage with higher NPV at median ZIP+4 usage higher NPV under all low ZIP+4

Another way to present these results is shown in figure 13. Here, the 80 percent credible values are shown for each option along with the overall net present value for

Document info
Document views292
Page views292
Page last viewedSat Dec 03 02:40:45 UTC 2016
Pages122
Paragraphs3734
Words24057

Comments