Remove Finance Remove Management Remove Net Present Value Remove Payback Period
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A Refresher on Payback Method

Harvard Business

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. What is payback period? Payback is by far the most common ROI method used to express the return you’re getting on an investment. ” The shorter the payback period, the better. This is the major limitation of the payback method.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business

A second, more radical solution is to create budgets and authority for a service line or integrated practice unit (IPU) that manages a patient’s entire treatment for a high-volume medical condition. The IPU is an essential component of the value-based care model advocated by Harvard Business School’s Michael Porter. Financial management Technology Innovation Healthcare Digital ArticleGillian Blease/Getty Images.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

In our recent HBR article , we argued that financial statements fail to capture the value created by modern digital companies. and (ii) how can digital firms improve their financial reports to communicate sources of value creation in their businesses? Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Martin Konopka/EyeEm/Getty Images.

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