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What Happens When Features Are Dropped To Make a Launch Date?

The Idolbuster

When the original product was scoped, it was designed to meet a set of unmet customer needs, and she created a healthy revenue forecast to justify the expense of development. Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV. There was equal pressure from myself and others.”.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

Most commonly noted in hindsight analysis of M&As are the effects of what we will call false positives, where in the fullness of hindsight it becomes clear that an acquisition effort was flawed from the start. To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey.

NPV 14
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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

If the first possibility prevails, then it's hard to see how the short-term hit to profits created by political instability could subsequently be made up (unless an investor were granted some favor that created or locked in a favorable market position).

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Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Addressing energy use in existing large commercial buildings has proven notoriously difficult.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

And who’s in the best position to offer advice? Next time you're deciding about a big investment, NPV can help you make a more informed decision. ” The goal is to develop an understanding of how your day-to-day actions help your employer to “drive revenue or mitigate costs,” he says. Related Video.

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Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down. That’s a more powerful model than something that is purely transactional.