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. Digital companies, in contrast, chase risky projects that have lottery-like payoffs. Risk is now considered a feature, not a bug.
Harvard Business Review
OCTOBER 16, 2013
Yet the decision to green-light a project is usually based solely on “expert opinions” — in other words, executives’ intuition supplemented by standard regression analysis. Most companies – including the movie studios in Hollywood – over-rely on basic tools like discounted cash flow and net present value.
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. billion.
Expert insights. Personalized for you.
8 
Let's personalize your content