Short-term vs. long-term

Here’s another thought experiment: You have enough resources to do only one of two potential projects that require the same investment. One gives you a one-time benefit of 1,000 units and the other gives you 300 units per year for the next 20 years. Which one would you choose?

Again, the answer depends on the organization. If you’ve invested in too many projects with long-term returns, you may prefer the first option to enable you to manage your expenses; or if your company is close to being bankrupt, you would definitely go for the first option. Otherwise, though, if you can afford a long-term return, you would prefer the second option.