What is the major difference between a SFFA (Simple Financial Feasibility Analysis) and the implied NPV method
Fantastic news! We've Found the answer you've been seeking!
Question:
What is the major difference between a SFFA (Simple Financial Feasibility Analysis) and the implied NPV method often used by developers?
a.SFFA provides a clear investment decision
b.AnimpliedNPVdoesnottelluswhethertoinvestfromafinancialeconomicinvestmentperspective.
c.SFFA tells us whether we can take out a loan to finance development costs and NPV (implied or actual) of the development investment decision tells us whether we will be better off financially.
d.SFFA computes the value of the property and NPV tells us the correct investment decision.
Posted Date: