The finance director has asked the facility manager to prepare a financial analysis comparing two...

Net Present Value (NPV) (Option C) is the best financial analysis method for comparing investments while considering the time value of money.

Why Option C is Correct?

NPV accounts for the future cash flows of an investment, adjusted for inflation and discount rates.

It helps FM professionals compare long-term financial impacts and determine the most cost-effective solution.

IFMA’s Finance & Business Core Competency requires FM leaders to use NPV for capital investment decisions.

Why Other Options Are Incorrect?

Option A (Benchmarking): Benchmarking compares performance and best practices, but does not consider financial time value.

Option B (Payback): Payback period only measures how quickly an investment recoups costs, but ignores future cash flows.