Concept Of Value Creation The Npv Of A Dswh For East...

has been made to generalize the NPV of a DSWH for east coastal region of India. Traditionally NPV has been location specific but in this study, effort has been made to generalize NPV for east coastal region of India. A dedicated risk model for Monte Carlo simulation of a DSWH has been developed using Microsoft excel 2013 and validated using @Risk7,a commercial software for risk modeling and simulation. 2. Concept of value Creation: 2.1 Various schools of thought of value: Value creation is a very crucial concept in business. Entrepreneurs are continuously putting a lot of effort to create sustainable value. Business is all about creating sustainable value. Different subjects: marketing management, operation management, finance and economics aim at creating value in their respective domain. These subjects look at value from their own school of thought but more or less when it is to be quantified for decision making, we talk about net present value. Few ways to define value are as below [22-24] Strategy: (1) Operation: (2) Economics: (3) Finance: (4) Using logic and from the first principle following formula has been formulated exclusively for a DSWH in general NPV : (5) This Eq. No. 5 can be used for a simple domestic water heater. For simplicity and without sacrificing much accuracy, salvage value (s) can be taken as zero. In case NPV is greater than zero, project can be accepted and if it is negative it has to be