Limitations of the five year period of analysis, Financial Accounting

Q. Limitations of the five year period of analysis?

A number of restrictions to the analysis potentially arise

- The approach doesn't take account of future benefits/costs after five years either continuing or new

- No information on contract length from the Water Authorities which may be longer than five years

- Other cheaper resources perhaps available over a longer period e.g. it may be cheaper to buy machines rather than rent them

- Analysis doesn't take account of the potential for physical site capacity increases that may turn into available after five years.

Posted Date: 7/11/2013 5:55:50 AM | Location : United States







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