Harvard Business Review

JUNE 18, 2015

In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. ” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. What PE firms do after they invest.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

Report 8

Report GAAP Net Present Value CFO 8

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. That's the finding of a new survey on how financial professionals determine their cost of capital, presented in a separate post on HBR.org today.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

MARCH 29, 2018

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Instead, the finance office can allow the department to keep some of the savings it created, in excess of the original acquisition cost, in future year budgets.

Budgeting 8

Budgeting System Innovation Payback Period 8