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Why Those Guys Won the Economics Nobels

Harvard Business Review

APRIL 2, 2014

You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way.

CAPM 8
CAPM Discount Price Finance 8
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Is Your Business Biased Against Innovation?

Strategy Driven

SEPTEMBER 9, 2011

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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Innovation NPV Business Model Constraint 50
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