Kostenvergleichsrechnung (EN)

Kostenvergleichsrechnung

The cost comparison method evaluates different investment alternatives based on their total costs over the useful life. It considers inflows and outflows, but not the time value of money. This method is particularly suitable for selecting between technical alternatives with the same benefit.

In Context

• Typically used together with the payback period calculation
• Related to: profitability calculation, net present value method, internal rate of return method
• Example use: Selection between two machines with the same performance but different operating costs