Question

Net present value is only a financial and economic criterion for selecting a project. What other factors may be important in accepting the project?

Answer 1

Organizational strategy
improving relationships with suppliers & customers
Political issues-meeting requirements of current & future legislation
matching industry standards & good practice
shareholders’ requests
improving business reputation & relationships with local community
improving staff morale
developing capabilities such as building skills & experience in new areas/strengthening management systems
anticipating & dealing with future threats, e.g., protecting intellectual property from potential competition