ABSTRACT
A classical criterion used to summarize all events of the project’s life cycle is the Net Present Value of the discounted cash flows generated by the project. The NPV represents the remuneration the entrepreneur will require to assume the risk induced by the project. This result will be compared to the situation provided by a perfectly reliable financial institution able to guarantee a fixed remuneration from a nominal investment during the life cycle of the project. This indicator (Fig. 2.11) is represented here in a simplified form to illustrate the MODEC threestep procedure developed by the author in collaboration with Dr. Philippe Wieser.
