Harvard Business Review

MAY 4, 2017

When most of the great companies of the industrial era were founded, even the most brilliant economists believed deeply in the law of diminishing marginal returns. The law of diminishing marginal returns held firm throughout the industrial era. He speculated that some industries actually demonstrated increasing returns.

Collison 8

Collison Net Present Value Company Short-term 8

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Related Video.

ROE 12

ROE Long-term GDP Six Sigma 12

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50