Harvard Business Review

MARCH 23, 2017

Next time you’re deciding about a big investment, NPV can help you make a more informed decision.

Net Present Value 8

Net Present Value Present Value NPV Information 8

Harvard Business Review

MARCH 9, 2011

Even modest continued earnings dramatically change the NPV calculation. The reality is most of us will need more money than we will have saved by age 62 or 65 in order to live securely for another 30 years. But financial issues are only part of the need for a big answer.

Career 14

Career Planning NPV Fashion 14

Harvard Business Review

MARCH 23, 2015

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. Of course not.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. What if I suggested that the best place to look for answers could be the shale oil fields of North Dakota?

NPV 11

NPV Net Present Value Industry Video 11

Harvard Business Review

MAY 4, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. Today, AWS is a much more valuable business for the company’s long-termism. So is Facebook. So is Google. The list goes on. Related Video. The Refresher: Net Present Value.

Collison 13

Collison Net Present Value Company Short-term 13

Harvard Business Review

APRIL 27, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. An activist hedge fund, for example, can exert massive pressure to change the strategy and/or investment approach of the company based on its ownership of a sufficient share of the company’s equity. Related Video.

Hedge 12

Hedge Short-term Long-term NPV 12

Harvard Business Review

AUGUST 4, 2014

The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise.

Brand 9

Brand DCF IRR NPV 9

Harvard Business Review

MAY 18, 2017

One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) But the article aimed higher, arguing that when corporate leaders invest with short-term results in mind, they put long-term performance at risk. Sound familiar?

Management 12

Management Balanced Scorecard NPV Article 12

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 these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. Related Video. The Refresher: Net Present Value.

ROE 15

ROE Long-term GDP Short-term 15

Harvard Business Review

OCTOBER 20, 2014

Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation. On the cost side, what’s the sourcing cost, the production cost, and the distribution cost? Which of these are ongoing, and which are one-off?

Discounted Cash Flow 8

Discounted Cash Flow P&L NPV EBITDA 8

Harvard Business Review

JANUARY 21, 2016

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time.

NPV 8

NPV Energy Efficiency Technology 8

Harvard Business Review

SEPTEMBER 21, 2015

” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment. “You can see that if you go three years out, the NPV is still negative on our investment. . “I know,” Lotta said. “I just wanted to get Dan off my back. He was getting on my nerves.

Case Study 8

Case Study Travel Hotels NPV 8

Harvard Business Review

MARCH 29, 2018

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Consider the opportunity to raise spending in Year 1 by $100,000 to acquire technology that would decrease spending each year thereafter by $100,000.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

MARCH 31, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. A finance textbook or reference guide is a good investment; but “Google works too,” he says. Related Video. The Refresher: Net Present Value. See More Videos > See More Videos > Tackle the balance sheet.

Finance 8

Finance Skills EBITDA Net Present Value 8

Strategy Driven

SEPTEMBER 9, 2011

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. One problem is that NPV calculations tend to compare today with some future state.

Innovation 50

Innovation NPV Business Model Constraint 50