Still Many Ways to Skin a Capital Cost
Harvard Business Review
MARCH 10, 2011
When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. As the treasury manager in Verizon's corporate finance department, he saw the research as an opportunity to gain valuable benchmarking information about how the CAPM is currently being used by his fellow practitioners.