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. Any time you propose a capital expenditure, you can be sure senior leaders will want to know what the return on investment (ROI) is. What is internal rate of return? How is it calculated?

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

The We Mean Business report cites an internal rate of return of 81% (that’s a ridiculous payback) on energy efficiency in the U.S., and an IRR of 27% for those companies with the most aggressive, science-based goals and actions on climate. Business can’t thrive unless the planet and society are thriving as well.

IRR 8

IRR Energy Tips Commitment 8