Consider Robert Galvins approach to evaluating the satellite project proposal. The text suggests that in not developing

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Consider Robert Galvin’s approach to evaluating the satellite project proposal. The text suggests that in not developing discounted cash flow analysis, Galvin’s ap- proach was flawed. In hindsight, Iridium was a failed project for Motorola, and even positive NPV projects can turn out to be failures after the fact. Can you provide a critique of the behaviorally based argument and suggest some reasons why in fore- sight it might have been entirely rational for Robert Galvin to have proceeded in the way that he did?

Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...
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