Remove Cost of Capital Remove Development Remove Goal Remove Strategic Planning
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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.

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Is Your Business Biased Against Innovation?

Strategy Driven

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. New product development is such a big piece of building new business, or so we are told. Net present value [NPV] is a case in point.