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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

Income statements almost always include an allowance for depreciation of capital assets. Determine the minimum return required by your company. The minimum rate of return is often called a hurdle rate, and it is determined by your company’s finance department. Evaluate the investment. This is the final step.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

McKinsey reports that the value at stake from sustainability concerns can be as a high as 70% of earnings before interest, taxes, depreciation, and amortization. One study estimated that companies experience an average internal rate of return of 27% to 80% on their low carbon investments.