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. Not at all, he said, because it's "no secret that applying the CAPM is as much an art as financial science." McNulty et al.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

JANUARY 15, 2014

Is market performance predictable for a specific product or class of products? If so, we should use a set of processes when designing and launching businesses that are geared for prediction — ask the right questions, perform the right analyses, plan production and supply chain for predictable variations on projected sales.

Black-Scholes 8

Black-Scholes Productivity Products CAPM 8

Harvard Business Review

MARCH 10, 2011

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. More than one-third of organizations forecast explicit cash flows for the first 10 years of a project. What's holding them back?

Cost of Capital 12

Cost of Capital CAPM Cost Discounted Cash Flow 12