>why would anyone invest in a project that wasn't +NPV?!?
It does happen all too often. Often people at the top are not technically qualified for the position that they are in and are unaware of Net Present Value.
Frequently there are political pressures or groupthink affecting clear decision making.
Sometimes leaders believe their own press and somehow delude themselves that they have a god given business gift that doesn't need to be analysed or explained. Consequently they lead the company into a Napoleon type "lets invade Russia" type disaster.
Don't get me wrong, NPV isn't always correct but it is a valuable tool and first step in evalutating and distibuting shareholder funds.
OZ Minerals needs to be doing a NPV analysis.
Ryan Upton
MBA BE
how should oz spend the 1 billion, page-19
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