Discussion
Which of these is LEAST useful in assessing a project's viability?
Answer: B
Correct answer: The number of employees
Headcount says nothing about whether a project is worth doing - it is an input, and a large one may be a cost rather than a merit. Viability is judged by net present value, which discounts the whole cash flow, and supported by breakeven and payback, which measure the margin of safety and the exposure.
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