2. Focus on market size rather than Net Present Value
In operating mode, and more specifically when setting up projects, one of the key indicators is "NPV" or "Net Present Value". Net present value is a measure of the profitability of an investment, calculated on the basis of the discounted cash flows generated by the operation. Projects must therefore be evaluated on the basis of their estimated future value.
In exploration mode, this calculation is virtually impossible to perform. And even if some people try, the result doesn't really mean anything. Are you going to rely on optimistic assumptions, or are you going to propose a more reasonable approach? Given that there's often a huge gap between the two situations.
2.1 Size of territory to conquer
What's important in exploration is...
Exclusive to subscribers. 97% yet to be discovered!
Already subscribed? Log in!
Focus on market size rather than Net Present Value
Article included in this offer
"Management and innovation engineering"
(
434 articles
)
Updated and enriched with articles validated by our scientific committees
A set of exclusive tools to complement the resources
Bibliography
Also in our database
Exclusive to subscribers. 97% yet to be discovered!
Already subscribed? Log in!