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A Refresher on Cost of Capital

Harvard Business Review

You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. To learn more about this commonly used business term, I spoke with Joe Knight, author of the HBR TOOLS: Return on Investment and co-founder and owner of www.business-literacy.com.

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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

This includes items such as equipment costs, shipping costs, installation costs, start-up costs, training for the people involved, and so on. Everything that goes into getting the project up and running has to be part of your initial cash outlays. Financial analysis Project management'

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g., high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. energy or telecom) or research-intensive industries (e.g.,

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The Comprehensive Business Case for Sustainability

Harvard Business Review

billion in mining projects since 2010. Significant cost reductions can result from improving operational efficiency through better management of natural resources like water and energy, as well as minimizing waste. Fostering innovation. Investing in sustainability is not only a risk management tool; it can also drive innovation.