Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment.

NPV 12

NPV Short-term Discount Politics 12

Harvard Business Review

OCTOBER 20, 2014

Organizations are salivating at the prospect of more and more data being fed into an IoT infrastructure and transforming industries globally. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.

Discounted Cash Flow 8

Discounted Cash Flow P&L NPV EBITDA 8

Harvard Business Review

JANUARY 21, 2016

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Chicago is piloting this approach, but other cities will need to follow suit for this work to significantly impact global emissions.

NPV 8

NPV Energy Efficiency Technology 8

Harvard Business Review

AUGUST 4, 2014

P&G is cutting its global brand portfolio by more than half. The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise.

Brand 8

Brand DCF IRR NPV 8

Harvard Business Review

MAY 1, 2017

The global financial crisis prompted many companies to pull in their horns, hoard cash, trim costs, and take a wary view of large investments. Bain & Company’s Macro Trends Group carefully analyzed the global balance sheet and found that the world is awash in money. times global GDP) to more than $600 trillion (9.5

ROE 14

ROE Long-term GDP Six Sigma 14

Strategy Driven

SEPTEMBER 9, 2011

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. One problem is that NPV calculations tend to compare today with some future state.

Innovation 50

Innovation NPV Business Model Constraint 50