Is Your Business Biased Against Innovation?
Strategy Driven
SEPTEMBER 9, 2011
Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Why? Many conventional metrics we use to estimate value are based on faulty assumptions. 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.
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