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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.
Accounting Policies These financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the revaluation of certain proper
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