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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption. Tunisia and Egypt are cases in point.

NPV 12
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books.

ROE 14
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Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

But the article aimed higher, arguing that when corporate leaders invest with short-term results in mind, they put long-term performance at risk. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) Sound familiar?

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

Lotta, who’d joined Ervaring from Marriott two years before, was the first to admit that her new company, with 12 brands operating 5,000 hotels, mainly in Europe, needed help. In her short time at Ervaring, she’d come to rely on him for help with investment decisions. ” Negative NPV.