Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Analysts increasingly rely on non-GAAP metrics. Some of these ideas contradict traditional financial thinking whereas others seem highly controversial or pessimistic.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

AUGUST 3, 2018

Currently, firms’ first report net profits and then back out many of these one-time items to present a non-GAAP (Generally Accepted Accounting Principles) profit number. Because investors consider these non-GAAP numbers to be value-relevant, we propose a more direct way for them to be calculated.

Report 8

Report GAAP Company Proposal 8

Harvard Business Review

JULY 1, 2016

For instance, he states that “When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we’ll take the cash flows.” .” He then enumerates the ways in which the firm’s policies will support the objective.

Short-term 10

Short-term Long-term Objective Incentives 10