Harvard Business Review

DECEMBER 2, 2010

Most commonly noted in hindsight analysis of M&As are the effects of what we will call false positives, where in the fullness of hindsight it becomes clear that an acquisition effort was flawed from the start. We call this the Opportunity Value (OV) of an asset. It lost the acquisition to an archrival that bid $840 million.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

FEBRUARY 7, 2011

If the first possibility prevails, then it's hard to see how the short-term hit to profits created by political instability could subsequently be made up (unless an investor were granted some favor that created or locked in a favorable market position).

NPV 12

NPV Short-term Discount Politics 12

Harvard Business Review

DECEMBER 23, 2013

However, in-depth analytics revealed that customers’ decisions to switch energy providers were driven by their and competitors’ prices, advertising and company’s position in in social media, TV, print and other mass media. They built a customer churn econometric model in which search was responsible for 65% of churn. customer surveys).

Marketing 11

Marketing NPV Short-term Net Present Value 11

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

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. What if I suggested that the best place to look for answers could be the shale oil fields of North Dakota?

NPV 8

NPV Net Present Value Industry Video 8

Harvard Business Review

MARCH 29, 2018

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Consider the opportunity to raise spending in Year 1 by $100,000 to acquire technology that would decrease spending each year thereafter by $100,000.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. And who’s in the best position to offer advice? The Refresher: Net Present Value. How can you boost your financial acumen? What the Experts Say. Related Video.

Finance 8

Finance Skills EBITDA Net Present Value 8