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Identify what can actually be chosen
Independent proposals can both be included in a simplified model when funding and other conditions permit. Mutually exclusive proposals cannot both be selected. A numerical table that omits this distinction can answer the wrong decision question.
Compare values at consistent dates
NPVs should refer to the same valuation date and compatible assumptions. An IRR is a rate for its interval, while NPV is an amount under a selected discount model. The two measures can rank different-scale alternatives differently.
Write the constraints next to the inputs
| Constraint | Example |
|---|---|
| Initial budget | Only 100 units of outlay available now |
| Indivisibility | A project must be chosen whole |
| Exclusivity | Choose either process A or process B |
| Dependencies | One proposal requires another |
| Horizon | A replacement assumption is needed to compare repeated lives |
Avoid turning a simplified ranking into a full recommendation
An exact result within a small budget model does not cover every operational, regulatory or strategic constraint. Report which constraints were included. A higher modeled NPV is a result under the stated forecast, not proof that its uncertainty or implementation risk was resolved.