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What Happens When Features Are Dropped To Make a Launch Date?

The Idolbuster

Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV. “When you build [mathematical] models, you try to make an intelligent metric,” which was based on sizing the market, and estimating the market share based on what the product could do relative to the competition.

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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. The two together, NPV + OV, provide an inclusive but not inflated valuation.

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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

If the first possibility prevails, then it's hard to see how the short-term hit to profits created by political instability could subsequently be made up (unless an investor were granted some favor that created or locked in a favorable market position).

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When It Pays to Think Like a Finance Manager

Harvard Business Review

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. Of course not.

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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 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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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Consider the opportunity to raise spending in Year 1 by $100,000 to acquire technology that would decrease spending each year thereafter by $100,000.