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. 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

Horizon 3 (H3) represents opportunities for future growth that may take the form of new products, services, capabilities, and perhaps extensions into non-adjacencies that show great promise but are highly uncertain. 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

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 13

NPV Short-term Discount Politics 13

Harvard Business Review

MAY 4, 2017

When your product can become more valuable to your customers over time, the way you prioritize building features and harvesting profits within a business needs to change. The Refresher: Net Present Value. Next time you're deciding about a big investment, NPV can help you make a more informed decision.

Collison 9

Collison Net Present Value Company Short-term 9

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

While this might seem like a radical step for hospitals, it is exactly the transition that occurred 100 years ago in the business world in general when companies shifted from a departmental or functional structure to a decentralized, business-unit structure that that was more aligned with and accountable for its products, services, and customers.

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. After all, if you’re trying to sell a product or strategy, you need to be able to demonstrate that it is both practical and high margin. The Refresher: Net Present Value.

Finance 8

Finance Skills EBITDA Net Present Value 8