How might npv analysis contribute to paralysis

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An organisation can face a 'paralysis by analysis' by over-analysing a proposed project. There is endless discussion around key assumptions. The managers proposing the project are repeatedly asked for more information and to provide more certainty with the assumptions. No decision is made and the managers proposing the project feel completely discouraged.

How might NPV analysis contribute to this paralysis? How can the problem of decision-making paralysis be mitigated without sacrificing the principle of value-based management using the NPV methodology?

Reference no: EM133276071

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