What is the difference between NPV and SANPV (Sequence Adjusted Net Present Value)?
The IFM heuristic, in order to select the development sequence with near-optimal NPV, assigns quantities called SANPVs to each MMF. A set of SANPVs is calculated for each MMF, representing the contribution to the overall project NPV caused by commencing that MMF at a specific time point after the start of the project. The IFM heuristic sequences the project by reference to the SANPV sets for each MMF.
