Unearthing the Achilles' Heel

The NPV Method: A Common Dilemma

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Discount Rates: A Double-Edged Sword

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The Assumption of Constant Cash Flows

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Ignoring the Time Value of Flexibility

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Inflation's Impact on NPV Calculations

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Overlooking Non-Monetary Factors

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The Illusion of Certainty in Projections

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Beyond NPV: Exploring Alternative Approaches

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Unearthing the Achilles' Heel

The NPV Method: A Common Dilemma

While NPV is widely used, it's not without its flaws.

Discount Rates: A Double-Edged Sword

Choosing the right discount rate is crucial but challenging.

The Assumption of Constant Cash Flows

In reality, cash flows can be unpredictable and fluctuate.

Ignoring the Time Value of Flexibility

NPV doesn't account for options or strategic flexibility." Slide 6:

Inflation's Impact on NPV Calculations

Inflation can distort NPV outcomes significantly.

Overlooking Non-Monetary Factors

NPV doesn't consider qualitative aspects of projects.

The Illusion of Certainty in Projections

Future uncertainties can render NPV estimates inaccurate.

Beyond NPV: Exploring Alternative Approaches

Discover modern methods that address NPV's limitations.

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