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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1%

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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

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).

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Some of these ideas contradict traditional financial thinking whereas others seem highly controversial or pessimistic.

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Why Is an App Worth as Much as a Small Oil Field?

Harvard Business Review

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?

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4 Assumptions About Risk You Shouldn’t Be Making

Harvard Business Review

Most executives know that the present value of an investment comes from projecting its cash flows and discounting those numbers into today’s dollars. The general rule is projects with positive net present values should get funded, and those with negative ones shouldn’t.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

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.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

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. This is where Opportunity Engineering comes into play.

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