The Idolbuster

JANUARY 17, 2013

When the original product was scoped, it was designed to meet a set of unmet customer needs, and she created a healthy revenue forecast to justify the expense of development. Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV. There was equal pressure from myself and others.”.

NPV 36

NPV Sample Project Metrics 36

Harvard Business Review

DECEMBER 2, 2010

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target.

NPV 15

NPV Net Present Value Price Engineering 15

Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment.

NPV 15

NPV Short-term Discount Politics 15

Harvard Business Review

MARCH 9, 2011

Even modest continued earnings dramatically change the NPV calculation. Most gloom and doom commentaries about future economic trends in developed nations are based on the assumption that people will choose to spend the last 30 years of their lives on a long cruise — consuming resources, while making no productive contribution.

Career 15

Career Planning NPV Fashion 15

Harvard Business Review

MAY 4, 2017

For years, AWS has invested in driving developer and company adoption of its platform by driving down prices and introducing low cost features to make developer’s lives easier. That ecosystem investment reinforces the value proposition and drives more developer adoption. Consider a business like Amazon Web Services.

Collison 14

Collison Net Present Value Company Short-term 14

Harvard Business Review

MAY 1, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. In our experience, companies still focus more on cutting costs than on developing and executing new growth strategies. Related Video. The Refresher: Net Present Value.

ROE 16

ROE Long-term GDP Six Sigma 16

Harvard Business Review

MAY 18, 2017

Garvin was a generalist more than a specialist, perhaps because he came of age at HBS during the 1980s, when the school’s primary focus was the development of skilled general managers. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.)

Management 13

Management Balanced Scorecard NPV Article 13