Harvard Business Review

MARCH 23, 2017

Next time you’re deciding about a big investment, NPV can help you make a more informed decision.

Net Present Value 8

Net Present Value Present Value NPV Information 8

Harvard Business Review

MARCH 17, 2016

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV. A Refresher on Net Present Value.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

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. The two together, NPV + OV, provide an inclusive but not inflated valuation.

NPV 14

NPV Net Present Value Price Engineering 14

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.

NPV 12

NPV Short-term Discount Politics 12

Harvard Business Review

DECEMBER 23, 2013

These estimates can then help determine the Net Present Value (NPV) of the long term effect of marketing in terms of future sales. Significant cuts to TV spend as suggested by traditional econometric modeling would have reduced the net present value of the brand’s profit. customer surveys).

Marketing 11

Marketing NPV Short-term Net Present Value 11

Harvard Business Review

MAY 4, 2017

As long as there are strong increasing returns to create , it’s possible that the net present value of my profit harvesting is indefinitely larger if deferred to the future. The Refresher: Net Present Value. Today, AWS is a much more valuable business for the company’s long-termism. So is Google.

Collison 9

Collison Net Present Value Company Short-term 9

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? 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. Of course not.

Finance 8

Finance NPV CFO ROI 8