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When It Pays to Think Like a Finance Manager

Harvard Business Review

They’re essentially asking the company to take the cash it has generated through its business operations and spend it on something with an uncertain future return. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? Here’s why. Excerpted from.

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

Harvard Business Review

Lotta Tindal, the chief marketing officer for the Dutch hospitality group Ervaring Hotels & Resorts, hadn’t wanted to come to the presentation, but Gerard Bakker, Ervaring’s CFO, had twisted her arm. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment.