␡
- Making Uncertainty Work for You
- Managing Uncertainty
- NPV and DCF: When and When Not to Use Them
This chapter is from the book
Managing Uncertainty
OE is both a tactical approach and a mindset. In other words, it offers a specific way of valuing opportunities—we developed our own proprietary software that enables you to plug in the parameters of a project and determine its potential quickly and with minimal effort. Along the way, it helps inculcate a culture of innovation, where decision makers are not afraid to go after high-risk, high-opportunity bets.
In the next chapter, we show you how to begin this process of OE, but first let's take a look at why NPV and DCF are right for some situations but wrong for others.