NPV ≈ $70,000 → Accept the project

NPV ≈ $25,000 → Accept the project

NPV ≈ -$10,000 → Reject the project

NPV ≈ $0 → Indifferent between accepting and rejecting

Crane B is preferred due to its lower equivalent annuity, despite higher per-year costs.

Crane A is more cost-effective because its NPV is higher.

Crane A is financially superior because of its longer replacement cycle.

Because it would imply decreasing marginal costs as capacity increases.

Because it would imply diseconomies of scale, where doubling capacity more than doubles the cost.

Because it would result in cost decreasing with scale, violating the time value of money.

Because power-law models require B<0B<0 to reflect inflation effects.

The IRR will always exist and be unique for this cash flow.

IRR is equal to the discount rate at which NPV equals the total benefits.

IRR can be directly compared between projects and added together to make portfolio decisions.

The statistical assumptions behind expected value always hold for rare events.

High-probability events make expected value less accurate than standard deviation.

The impact and probability of extreme events are difficult to quantify, and rare occurrences require large sample sizes to be statistically meaningful.

Expected value overestimates the impact of unlikely events due to regression to the mean.

It requires detailed modeling of tax depreciation schedules.

It ignores the time value of money.

It does not consider benefits after the payback period.

It cannot distinguish between two projects with identical initial costs but different total NPVs.

$60.25 million

$53.07 million

$37.75 million

Cradle-to-grave Social LCA

Cradle-to-gate life cycle costing

Cradle-to-cradle Social-LCA

Cradle-to-cradle life-cycle costing

Cradle-to-gate Environmental LCA

The likelihood that your company might be expected to pay bribes to get things done in a particular country 

The countries that require you to register before you can practice as an engineer

The relative financial inequality within a country 

Whether a project to improve medical diagnoses using AI interfaces is likely to be successful in a particular country