in theory, every project should be accepted or rejected on the basis of its NPV. That said, sometimes it is devilishly difficult to pick the right input values. Heck, a lot of times we don't even know what the first cash outflow is going to be, much less the future cash inflows! It is within that context that I want you to wrap your mind around this question. In your response, you should attempt to blend theory with the practical issues that may arise when attempting to apply your grad-school learning to real-world problems. :)