Net Present Value

Net Present Value (NPV) is a powerful measure that businesses use all the time. For those that do not use it, NPV is the value of all future revenue minus all future costs, both discounted to the present day using the time-value of money. Using NPV, decisions can be made based on a longer-term view than simple up-front cost and benefit.

The trouble is, I ignore this in my everyday life. Yet it can make a huge difference. Paying twice as much for a jacket that lasts four times as long makes sense, except that I am cheap, and I rarely look beyond my wallet.

Two lessons come out of this.

1. Think about the future. It usually does not take much thought or time, but the decisions we make today matter (both purchases and otherwise).
   
2. Buy Avalanche Wear. I bought an Avalanche fleece vest many, many years ago only because it was on sale. Beyond making me think about this question, it has been my go-to mid-weight warmth in the Grand Canyon, on ski slopes, and around town. It has been the best outdoor clothing purchase I have ever made (and I have made a lot).