If a project has intangible benefits whose value is hard to estimate, the best thing to do is:

(a) ignore these benefits, since any estimate of their value will most likely be wrong.

(b) include a conservative estimate of their value.

(c) ignore their value in your initial net present value calculation, but then estimate whether their potential value is worth at least the amount of the net present value deficiency.

(d) Either

(b) or

(c) is correct.

AppendixLO1