Problem:
It appears that NPV or net present value is the best method because it takes into account the initial financial outlay, and brings the future projections back to the present day's value to figure out which is worth pursuing in the long run. Entrepreneurs take many risks, but of course, most wish to take the most calculated risks and prepare for whatever could or would happen in advance. This is were the discount rate is applied to the npv calculation for...to cover a "happen-stance" if and when it pops up. In other words, if for some reason a fluctuation were to occur (like interest rates go up, for example), you aren't losing any money on your project's investments because you have that covered. Am I understanding this correctly and is there more clarification?