a）Managers' remuneration may depend upon the level of annual profits, and they may thus be unwilling to risk large initial expenditure on a project that only offers good returns in the significantly uncertain long-term.

b）NPV method is based on the assumption that businesses seek to maximise the wealth of their shareholders, this may conflict with the interests of other stakeholders.

c）There may be factors that help maximise wealth, but cannot be quantified for NPV purposes, for example investment in a loss-making project for strategic reasons such as obtaining an initial share in an important market.