Ei asked in Social ScienceEconomics · 6 months ago

Are mitigated costs included in calculating Net Present Value (NPV)?

For example, if a company decides to treat their own waste rather than paying someone else to treat it. Is the mitigated cost of paying someone else included in NPV? If so, how is it accounted for?

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  • Oiy
    Lv 5
    6 months ago

    The cost of treating its own waste is the same as the payment of Pigouvian taxes. So it 's included in NPV.

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