Harvard Business Review

APRIL 30, 2015

You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. What is the cost of capital? “The cost of capital is simply the return expected by those who provide capital for the business,” says Knight.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

JUNE 22, 2016

The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). The supplier gives the buying firm a discount on the invoice amount at the buyer’s lower cost of capital. the supplier gets $9,959 of the $10,000).

Supply Chain 11

Supply Chain Cost of Capital Transportation Finance 11

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. To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

FEBRUARY 1, 2018

The intrinsic value of a company with growing cash flows doubles every time the discount rate is cut in half. The lower the discount rate, the more that future cash is worth.) So, value grows exponentially as the discount rate approaches zero. The cost of capital is at historic lows, averaging below 6% for most large U.S.

Supply Chain 9

Supply Chain CEO Discount Retail 9

Harvard Business Review

JUNE 26, 2015

Managing death more effectively can provide numerous benefits: It can boost profits significantly, lower the cost of capital, and reduce complexity in operations, which can improve the performance of concepts that are in the early and midlife stages. Managers also frequently did not discount deeply enough early in a liquidation.

Retail 8

Retail Cost of Capital Price Discount 8

Harvard Business Review

OCTOBER 13, 2015

Americans can buy all sorts of foreign goods at an almost 20% discount from a year ago. The standard concern is that the high US dollar hurts America’s manufacturing cost position because US production costs are inflated by the dollar’s appreciation. In some respects, this is a really good thing.

EPS 8

EPS Short-term Cost of Capital Long-term 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. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.

Cost of Capital 13

Cost of Capital CAPM Cost Discounted Cash Flow 13