Non-quantifiable factors to accept the proposal, Financial Accounting

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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.


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