sameeragarwal

Ahh, good point. That’s probably barking up the “right” tree.
Still…adding such a delay-start option into the NPV (capital budgeting) analysis, how? Delays can just as well be cost-inducing. Time-to-market and all that. If anything, if management is so uncertain about market reception, perhaps the right answer is to boost the discount rate to account for greater project risk. Now we’re getting somewhere… (But then why the heck wouldn’t CFAI put something along those lines in their “answer”?)
Obviously a lot of speculation. Would be a lot better if we could appreciate how Hernandez’ “analysis” is affected in a clear, at best quantifiable, way.
Thanks again.