Remove CFO Remove NPV Remove ROI Remove Technology
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When It Pays to Think Like a Finance Manager

Harvard Business Review

Everyone always wants new equipment — new computers or other hot technologies. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? From our point of view, in other words, most people use ROI analysis as a way to justify something they really want to do anyway.

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The Worst Failure of All Is Wasting a Failure

Harvard Business Review

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." To state that it didn't hit ROI, or whatever the metric is, doesn't answer the question. Clearly the company was painfully aware of these two failed projects. The problem came with the follow-up question, "Why did example A fail?".

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