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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. 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.

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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. One CFO commented that standard setters enjoy monopoly power and have no incentives to change their methods to be more responsive to investors.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

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. This is where Opportunity Engineering comes into play.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. It only means using data to better define when and where marketers should target audiences with which messages—and to demonstrate the value in doing so. Finance Marketing'

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

The Refresher: Net Present Value. An activist hedge fund, for example, can exert massive pressure to change the strategy and/or investment approach of the company based on its ownership of a sufficient share of the company’s equity. Related Video.

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An Unexpected Lesson from Mandela: Why Context Matters

Harvard Business Review

This would be a breakthrough communication technology, with the power of connecting an excluded and fragmented continent with itself, with the world, and to this newly emerging phenomenon — that none of us quite understood at the time — called the Internet. Given its economic heft, South Africa was among my first ports of call.

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Is Your Business Biased Against Innovation?

Strategy Driven

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. That’s a more powerful model than something that is purely transactional.