Harvard Business Review

MARCH 17, 2016

Any time you propose a capital expenditure, you can be sure senior leaders will want to know what the return on investment (ROI) is. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

APRIL 9, 2015

But before anyone writes a check, you need to calculate the return on investment (ROI) by comparing the expected benefits with the costs. Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Determine the minimum return required by your company.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

APRIL 18, 2016

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. Payback is by far the most common ROI method used to express the return you’re getting on an investment.

Payback Period 8

Payback Period Net Present Value ROI Rate of Return 8

Harvard Business Review

JUNE 22, 2015

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. How do you calculate it?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8