In sum, neither a modest increase in price per unit for the multi-line OCRs or in the total number of units would significantly change the NPVs.
Overall and selected year cash flows.
Net present value is the best basis for
comparative quantitative evaluation undiscounted net cash flows over another dimension to the evaluation.
the decision options. 13 year payback period
However, the actual (1985-98) can provide
Comparative net cash flows for selected options and conditions are shown in figure 16. Option A (single-line) is estimated to show positive cash flows of $8.8. $8.24, and
$3.57 billion at high, medium, and low ZIP+4 usage. (multi-line with ZIP+4) is somewhat lower at $8.14
At high billion,
ZIP+4 usage, option B options D (automatic
conversion) and H (90-10 split procurement) somewhat higher at $9.36 billion and 9.24
billion respectively, and option billion. The comparisons between
G (50-50 split procurement) about the same at $8.75 options change relatively little at median ZIP+4 usage.
However, at low ZIP+4 usage there is a substantial difference in net cash flows. Option A (single-line) shows a net cash flow of $3.57 billion. But, depending on the multi-line OCR performance rate, options D (automatic conversion) and H (90-10 split procurement) show a net cash flow of $5 to 7.2 billion, or about $1.4 to 3.6 billion greater than option A. Option G (50-50 split procurement) shows about $1.1 to 3.3 billion greater cash flow than option A, and option B (multi-line with ZIP+4) shows about $0.8 to 3.0 billion greater cash flow than option A.
A comparison of yearly cash flows gives similar results. Yearly cash flows for selected options and conditions are shown in figure 17, for the years 1994-98. By this time, all equipment will presumably have been installed (or converted) and up and running