Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Given that even sophisticated investors cannot estimate the value of these companies, CFOs question the ability of a day trader to value a digital company.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

JANUARY 11, 2012

After exploration, there are lots of ways to plan, but at the very least a good plan details the target customer, crucial stakeholders, the essence of the idea, key economics, the commercialization path, proposed operations, the team, financial requirements, and the action plan. Is the testing plan well thought out?

Company 14

Company Net Present Value How To Proposal 14

Harvard Business Review

DECEMBER 28, 2016

This will give you clarity and confidence in what you’ve seen, how the pieces of the puzzle fit together, allow hypotheses to be formed and plans for change to be made. Customer Lifetime Value : This is the net present value of all future customer revenues with account for attrition and your discount rate.

Attrition 10

Attrition Metrics Net Present Value KPI 10

Harvard Business Review

FEBRUARY 24, 2011

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

Letter 14

Letter P&L Net Present Value Insurance 14

Harvard Business Review

MARCH 10, 2011

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

NOVEMBER 25, 2013

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. As obvious as it may seem, CMOs should invite finance to participate in marketing’s planning process to build bridges and to benefit from financial expertise. Ask for the CFO’s help.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

DECEMBER 11, 2013

A senior minister took me aside the next day and asked if we could scrap the plans for a ring around Africa and just do a single cable that linked South Africa to …. These were engineers and network planners; surely, they understood economics and net present value analysis. Just Malaysia. I told them my story.

Net Present Value 8

Net Present Value Analysis Politics Telecommunications 8