Discuss NPV and why change occurs

1. Labor shortages and supply delays have hit your company across most sectors, including a new hotel that is under construction. Instead of the hotel opening in September of 2023, it is now anticipated that the hotel wont be completed until mid-2025. These changes are anticipated to both increase construction costs as well as delay projected revenues on the project. Note: be sure to discuss each of these issues and whether they will offset or multiply the effect on NPV.

2. Newly available technology has reduced operating costs for a project that is in year 2 of a project which still has 8 years of viable life. No other changes in the project have occurred.