Harvard Business Review

MAY 4, 2017

For years, AWS has invested in driving developer and company adoption of its platform by driving down prices and introducing low cost features to make developer’s lives easier. That ecosystem investment reinforces the value proposition and drives more developer adoption. The Refresher: Net Present Value.

Collison 10

Collison Net Present Value Company Short-term 10

Harvard Business Review

NOVEMBER 25, 2013

Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent). To date, however, the reality of marketing analytics has fallen short of the promise. Why is this so challenging?

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 15, 2012

Companies knew how to engage a design firm, license IP, and form joint ventures, but few knew how to truly co-develop innovations with external partners, such as PARC. Net Present Value ). It turns out that companies tend to do well when they focus on their short-term business or develop options for long-term growth.

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

FEBRUARY 7, 2011

In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption. Tunisia and Egypt are cases in point.

NPV 12

NPV Short-term Discount Politics 12

Harvard Business Review

MARCH 10, 2011

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value. However, the practitioner using the 1-year Treasury may also be using the higher Ibbotson long-term market risk premium, while the others use a more recent lower valued risk premium.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The Refresher: Net Present Value. “Think of yourself as a miniature profit and loss statement: How do you add value? . How can you boost your financial acumen?

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

FEBRUARY 24, 2011

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

Letter 15

Letter P&L Net Present Value Insurance 15