original publish date: 11th November, 2011
decades on …
Commentary coming soon.
transcript
FTE #1: I would approve any business case with an N.P.V. above zero because it has met the hurdle rate set by the company.
FTE #2: Wrong. The closer an N.P.V. is to zero, the more you test estimates, assumptions and forecasts and the more convinced you are that the whole business case was reverse-engineered.
Caption: Textbooks only tell half the story.