FIN.9:10 - Architectural Rationale

Individual values become an allocation answer only after the alternatives can be selected together on their stated grounds. Shared resources, common baselines and future choices can make a sum of correct standalone figures describe no feasible action. Constructing the whole alternative reveals the interaction and locates the binding constraint, while retaining the constituent Methods for the calculations they actually supply.

The horizon follows the required consequence. A four-year service choice can need a replacement after two years; an independently complete two-year opportunity need not be repeated just to match another investment’s life. Likewise, preserving two valuable options does not supply the capacity to exercise both. These differences are reasons to construct the actual continuation, not to reject NPV or choose a universal annualization rule.

A transaction changes more than the cash paid or received. Buying changes claims and operations, and the price determines how much of the combined gain remains with the buyer. Selling can leave costs and obligations with the remaining business. Comparing those whole alternatives prevents standalone target value or headline proceeds from being mistaken for an incremental gain to the corporation. Legal closing and operational delivery remain the actual practices that make the selected financial premises attainable.