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Any non-quantifiable factors you feel might influence the decision to accept the proposal.
Net present value methods are merely assessments of factors that we can quantify. There may be non-quantifiable factors that may as well have an impact on any decision we make. Some of these may be
- It is significant to keep our only customer happy and therefore a high standard of general service is important.
- Future contracts are probable to depend on agreeing to the proposal. Therefore future benefits may emerge which are currently hard to quantify.
- The continuance of the active business relationship with the Water Authorities may position the company to expand and provide water to other sectors of the economy.
- The existing and proposed contracts safe continued employment for personnel.
This is significant in a labour market that may be experiencing shortages and where key personnel are difficult to replace.
Temporary or Timing differences Temporary/timing differences relate to those items that are adjusted in the current period and are again adjusted in subsequent financial period
what is non-current asset
trading a/c,p/l a/c and balace sheet
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