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Complimentary Resource – Change Is Constant: PMBOK Guide 5th Edition

Strategy Driven

The fifth edition of the PMBOK Guide® was released and once again the profession of project management moved forward. StrategyDriven has partnered with TradePub.com to offer you complimentary one-year subscriptions and/or free trials to dozens of leading business publications.

PMBOK 50
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Still Many Ways to Skin a Capital Cost

Harvard Business Review

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. Not at all, he said, because it's "no secret that applying the CAPM is as much an art as financial science."

CAPM 14
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Stop Trying to Predict Which New Products Will Succeed

Harvard Business Review

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. An easy way to begin addressing the problem is to examine the accuracy of your projections.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. And the theory that was available then was CAPM. And in those early tests, it seemed like market prices mostly obeyed both CAPM and the efficient market hypothesis. But everybody still uses the method that came out of CAPM.

CAPM 8
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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

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?