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Click through the pages to review the elements of this topic.<\/h3>\n","coverMedium":{"params":{"decorative":true,"contentName":"Image","expandImage":"Expand Image","minimizeImage":"Minimize Image","title":"Photo by Eugene Kuznetsov on Unsplash","file":{"path":"images\/file-6633c27f79e4c.jpg","mime":"image\/jpeg","copyright":{"license":"U"},"width":3888,"height":2592}},"library":"H5P.Image 1.1","metadata":{"contentType":"Image","license":"U","title":"Untitled Image"},"subContentId":"bc593bc6-6703-4738-979d-cb9ea78f9139"}},"chapters":[{"params":{"content":[{"content":{"params":{"text":"
The NPV evaluation techniques rely on tangible costs and benefits that are able to be calculated and measured, however, companies fail to properly consider many projects that have important intangible benefits to the organization such as increased quality, safety, lead to customer satisfaction or employee retention. By doing this, it could lead to an incorrect evaluation of the full value a project may have. To avoid this, there could be two approaches: <\/p>\n\n
\n\t
Complete the NPV analysis outlined above and if it is negative, complete a review of the intangible benefits and evaluate if these benefits outweigh or overcome the amount lost. <\/li>\n\t
If management cannot confidently estimate the potential revenues and lower costs, they could try to make a conservative estimate of these values and include them into the NPV calculation. <\/li>\n<\/ol>\n\n
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NPV stands for net present value.<\/p>\n"]},"library":"H5P.Blanks 1.14","metadata":{"contentType":"Fill in the Blanks","license":"U","title":"Fill in the Blanks"},"subContentId":"e3801ca8-4430-4588-a0d3-64f7ce8c777c"},"useSeparator":"auto"}]},"library":"H5P.Column 1.18","metadata":{"contentType":"Column","license":"U","title":"Check for Understanding"},"subContentId":"bc526c66-e501-424d-a85b-6ba75c75f83d"}],"behaviour":{"baseColor":"#1768c4","defaultTableOfContents":true,"progressIndicators":true,"progressAuto":true,"displaySummary":true,"enableRetry":true},"read":"Read","displayTOC":"Display 'Table of contents'","hideTOC":"Hide 'Table of contents'","nextPage":"Next page","previousPage":"Previous page","chapterCompleted":"Page completed!","partCompleted":"@pages of @total completed","incompleteChapter":"Incomplete page","navigateToTop":"Navigate to the top","markAsFinished":"I have finished this page","fullscreen":"Fullscreen","exitFullscreen":"Exit fullscreen","bookProgressSubtext":"@count of @total pages","interactionsProgressSubtext":"@count of @total interactions","submitReport":"Submit Report","restartLabel":"Restart","summaryHeader":"Summary","allInteractions":"All interactions","unansweredInteractions":"Unanswered interactions","scoreText":"@score \/ @maxscore","leftOutOfTotalCompleted":"@left of @max interactions completed","noInteractions":"No interactions","score":"Score","summaryAndSubmit":"Summary & submit","noChapterInteractionBoldText":"You have not interacted with any pages.","noChapterInteractionText":"You have to interact with at least one page before you can see the summary.","yourAnswersAreSubmittedForReview":"Your answers are submitted for review!","bookProgress":"Book progress","interactionsProgress":"Interactions progress","totalScoreLabel":"Total score","a11y":{"progress":"Page @page of @total.","menu":"Toggle navigation menu"}}