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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. What is payback period? ” The shorter the payback period, the better. Finance & Accounting Article.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

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.

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How to Better Manage Your Company’s Utility Bills

Harvard Business Review

In general, managing energy bills has traditionally been a pretty low priority for most corporations. Outside the hot topic of who gets to control the thermostat , most managers just want to know that the lights will turn on and the computer servers will not be interrupted. We believe that this view is quickly becoming obsolete.