varighetsverdi

Varighetsverdi is a term used in Norwegian economics and finance to denote the value associated with the duration of a payment stream, contract, or asset. It captures how the length of time over which cash flows occur or an obligation remains outstanding influences its economic worth. The concept is typically employed as a descriptive tool within models and assessments rather than as a single standardized metric.

Derived from varighet meaning duration and verdi meaning value, varighetsverdi emphasizes the temporal dimension of value.

It appears in analyses of bonds and pension liabilities, where longer durations affect sensitivity to interest-rate changes and the present value of future payments. It is also used in product life-cycle assessments and capital budgeting to compare investments with different lifespans or to evaluate durability and end-of-life costs. In practice, many analysts treat varighetsverdi as the portion of value attributable to time duration rather than as a separate numerical formula.

Calculating varighetsverdi typically involves projecting cash flows over time and discounting them to present value, with consideration of the expected duration and uncertainty. In actuarial contexts, durations and survival probabilities influence the estimated value of long-term liabilities or annuities, which in turn contribute to varighetsverdi.

See also: duration, present value, discounting, actuarial science, life-cycle assessment.