Mr. Seamus McCarthy:

Because it did not take account of the time value of money. If someone was asked to put, say, €100,000 of his or her own money into a project or an investment and in ten years, he or she received €130,000, which is a 30% EROI, would that person be satisfied with it? It is a very difficult question to answer without considering what return the person would receive if he or she put the money into a bank offering an interest rate of 2% or 4%. Unless one has meaningful figures that one can use to allow oneself to make a decision, one cannot decide whether one is prepared to put money into the project as opposed to a bank. One needs the tools, one must have the interest rate and the rate of return. That is what I have been arguing on this.