When conflict arises between the tenets of competitive analysis and those

of financial analysis, it's not the theory at fault but the practice.

Good project evaluation considers all relevant factors, including hard-to-

quantify costs and benefits. It takes into account the consequences of not
investing and also recognizes the value of opening up options.

Finally, it doesn't undervalue projects by arbitrarily restructuring the time

horizon or setting discount rates too high, and it considers separately
investments that may be proposed together.