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101 Things I Learned in Business School

Leading Blog

B USINESS is not a discipline, but an endeavor made up of disciplines such as accounting, communications, economics, finance, leadership, management, marketing, operations, psychology, sociology, and strategy. perpetually exceed the cash receipts from the previous, smaller sales volume.

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A Refresher on Internal Rate of Return

Harvard Business Review

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. What is internal rate of return? The IRR is the rate at which the project breaks even. Finance & Accounting Article. How is it calculated?

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7 Tips How Investing Can Help You Secure a Better Future

Strategy Driven

While they may not offer double-digit returns, they certainly come with a higher rate of return than a basic savings account. That’s page 1 of Finance 101—higher the risk, higher the return. For example, instead of buying a stock just because its price tanked, look at its PE ratio to gauge the stock’s value.

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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. HBR TOOLS: Return on Investment. Finance & Accounting Tool. Let’s look at an example: A midsize manufacturing company wants to know whether to invest in a new $10 million facility. Excerpted from.

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A Refresher on Payback Method

Harvard Business Review

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. Knight provides an example. Say, for example, the cash flow for the project was actually $3,000/year in Year 1 and nothing thereafter.

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Will Wall Street Be Able to Earn the Trust of Younger Investors?

Harvard Business Review

One next-generation example already available today is YieldStreet, which offers a wide variety of debt investments—including real estate, marine finance, and litigation finance–that have generated an internal rate of return in excess of 12.5%

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Politicians have claimed that retaining cash balances is hurting the global economy—even characterizing the practice as unpatriotic —and many investors have argued that excess cash rightfully should be returned to shareholders through dividend payments or share repurchases. Arguments for Strategic Cash. Facilitate Investments.

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