Defense Analysis Revolutionized: New Method Reveals True Life-Cycle Costs
The article discusses how Discounted Cash Flow (DCF) methods like Internal Rate of Return (IRR) can help analyze costs in defense projects. While IRR is not commonly used in defense, it can be useful for comparing different project costs directly. By looking at the difference between baseline and alternative cost streams, IRR can help with Functional Economic Analysis (FEA) in defense. This method can provide valuable insights into the financial management of investment projects.