Remove Bottom-up Remove Finance Remove NPV Remove Operations
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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

If you’re not a numbers person, finance is daunting. Stop avoiding finance because you’re afraid of numbers. Think of it this way, “Finance is the way businesses keep score. “Finance and accounting are very simple. .” “Finance and accounting are very simple. Overcome your fears.

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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

Foreign subsidiaries can expect local sales to fall and distribution channels to come to a halt, with depressing consequences for the bottom line. Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation.

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

Lotta, who’d joined Ervaring from Marriott two years before, was the first to admit that her new company, with 12 brands operating 5,000 hotels, mainly in Europe, needed help. Although this wasn’t out of the ordinary for European hoteliers, Ervaring needed to reduce its cost per booking to improve its bottom line.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. Next time you're deciding about a big investment, NPV can help you make a more informed decision. But many companies struggle to come up with enough promising growth options. And the after-tax cost of debt for many large companies is close to the rate of inflation.

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