The difference \rm VOI between the expected net profit present value \rm NPV_{INFO}, generated by business activity with use of a specific information, against the expected net profit present value \rm NPV_{BASE}, generated by business activity without this information in hand:
| (1) | \rm VOI = NPV_{\rm INFO} - NPV_{\rm BASE} |
where
\rm NPV_{INFO} | net profit present value, generated by business activity with use of a specific information |
\rm NPV_{BASE} | net profit present value , generated by business activity without a specific information in hand |
If the estimation of \rm VOI is positive then a specific information is valuable and should be scheduled for acquisition.
See also
Economics / Net Present Value (NPV)