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When It Pays to Think Like a Finance Manager

Harvard Business Review

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. Finance & Accounting Influence'

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

Next time you're deciding about a big investment, NPV can help you make a more informed decision. If it is Pershing Square, the interests of the investors who have provided the company with more valuable capital will swamp its influence — appropriately. Related Video. The Refresher: Net Present Value.

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