Harvard Business Review

MARCH 17, 2016

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?

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

APRIL 18, 2016

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. And it “obviously has to be shorter than the life of the project — otherwise there’s no reason to make the investment.”

Payback Period 8

Payback Period Net Present Value ROI Rate of Return 8

Harvard Business Review

APRIL 9, 2015

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. Everything that goes into getting the project up and running has to be part of your initial cash outlays. Excerpted from. Joe Knight.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

APRIL 30, 2015

. “At most companies, the cost of capital is a mechanical calculation done by the finance people. Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. or 11% as the discount rate. or 11% as the discount rate.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

APRIL 16, 2012

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.

Company 13

Company Cost of Capital Finance Long-term 13

Harvard Business Review

SEPTEMBER 15, 2017

They particularly overpay when the interest rate – the rate of return required by the bank – is high, just as firms particularly repurchase when the stock price is low and thus the rate of return required by shareholders is high. Debt is a useful analogy for a second reason.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

JULY 31, 2014

How did Sal Khan finance his venture? His backers believe that investing in Khan Academy represents one of the highest returns in improving education around the world (see this HBS case for more on how funders decided to get involved). First, Sal Khan could have continued in finance and made far more money than he does in a nonprofit.

Bond 11

Bond Education Finance Video 11