Harvard Business Review

MARCH 10, 2011

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value. They believed managers needed a better way to come up with a number to represent their cost of capital, and that's what they were presenting.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

DECEMBER 2, 2010

The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target. We call this the Opportunity Value (OV) of an asset. This is where Opportunity Engineering comes into play. Alexander B.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

OCTOBER 15, 2012

Companies knew how to engage a design firm, license IP, and form joint ventures, but few knew how to truly co-develop innovations with external partners, such as PARC. At that time it was hard for PARC to understand how much we needed to invest in a new technology before approaching partners to work together in commercialization.

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

MARCH 23, 2015

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? They figure out how much the new computer system and software will cost and they compare that with the cash flow generated through efficiencies (assuming they know how to analyze returns based on cash flow).

Finance 8

Finance NPV CFO ROI 8

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. If the owner of that subsidiary discounts profits in Egypt by 12.5

NPV 13

NPV Short-term Discount Politics 13

Harvard Business Review

AUGUST 21, 2015

. “Marketers need to understand how elastic , sensitive to fluctuations in price, or inelastic , largely ambivalent about price changes, their products are when contemplating how to set or change a price,” says Avery. Read refreshers on net present value , breakeven quantity , debt-to-equity ratio , and cost of capital.

Price 8

Price Debt to Equity Ratio Marketing Metrics 8

Harvard Business Review

JUNE 22, 2015

I talked with Jill Avery, a senior lecturer at Harvard Business School and co-author of HBR’s Go To Market Tools , to better understand how to use this important calculation. While the concept may be straightforward, the calculation and the assumptions underlying it are far from simple. What is breakeven quantity (BEQ)?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

JANUARY 11, 2012

My last post described how Innosight follows a three-stage process to evaluate investment proposals from outside entrepreneurs. But deciding how to invest in ideas at a corporation is a different beast. Note what isn't part of the decision: an idea's net present value or return on investment.

Company 15

Company Net Present Value How To Proposal 15

Harvard Business Review

DECEMBER 11, 2013

The world was suddenly considering how to connect to this hitherto isolated country and embracing a potential economic and political powerhouse. I made what I thought was a brilliant presentation to senior bureaucrats and technologists. Those were exciting times for the country. I told them my story.

Net Present Value 8

Net Present Value Analysis Politics Telecommunications 8

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. You will learn how to identify and prioritize your company’s full portfolio of opportunities – from new product lines to entirely new businesses.

Innovation 50

Innovation NPV Business Model Constraint 50