Why are Recurring Savings multiplied by a factor of 10?
A. Recurring Savings have more value than Temporary Savings because they continue beyond the implementation of the project. To value Recurring Savings, we divide Recurring Savings by a “discount rate” that factors in the uncertainty of achieving these savings in the future. In this year’s program, we are using a 10% discount rate; dividing by 10% is the same as multiplying by 10.
