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Glossary > V > "Value additivity principal" Definition

Value additivity principal

Prevails when the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Stated differently, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.

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Value additivity principal - Prevails when the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Stated differently, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.

Value additivity principal : prevails when the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. stated differently, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.