Harvard Business Review

MARCH 17, 2016

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. IRR doesn’t give you real dollars.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

FEBRUARY 7, 2012

First, 75 percent of Walmart's California stores now have "some kind of renewable energy system." It also recognizes that, in the meantime, operational managers will gain valuable experience and knowledge about how to optimize the new power systems. We worship internal rates of return (IRR) to our detriment.

ROI 14

ROI IRR Power Payback Period 14

Harvard Business Review

SEPTEMBER 24, 2014

and an IRR of 27% for those companies with the most aggressive, science-based goals and actions on climate. Even those hippies over at asset manager Lazard calculate that the cost of solar PV technologies has dropped nearly 80% in five years. It’s easy to march against the current system, but harder to commit to something to march for.

IRR 8

IRR Energy Tips Commitment 8