article thumbnail

An Unexpected Lesson from Mandela: Why Context Matters

Harvard Business Review

And now, post-election, it was critical that the bonds be strengthened further. These were engineers and network planners; surely, they understood economics and net present value analysis. If South Africa was to develop, it could not afford to ignore the technocrats entirely. But consider the economics,” I continued. “A

article thumbnail

Why Those Guys Won the Economics Nobels

Harvard Business Review

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. 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. Instead, what you need to do is scenario analysis.

CAPM 8
article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. Tools for each challenge are presented, backed by examples from companies – from small firms to global giants – that have successfully put these methods into practice.