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10 Reasons Why Every Manager Should take a Finance Course

Great Leadership By Dan

The audience was mostly engineers – program and project managers, the ones in charge of designing and making complex stuff. Caution: when employees feel like owners, no more wasting money on expensive furniture, management boondoggles, or projects with a poor net present value. You can help them feel like owners too.

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How Developing Countries Can Benefit From Green Technologies

The Horizons Tracker

Green frontier technologies, such as electric vehicles, solar and wind energy, and green hydrogen, are projected to attain a market worth of $2.1 trillion by 2030, which is four times greater than their current value.

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What is Great Leadership?

Great Leadership By Dan

Managers tend to govern over process, data, projects and products while leaders tend to utilize human capital to navigate these same areas and participate as part of the process. It forces leaders to rank employees base on value, performance and teaming as they consider the budgets made available to them.

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A Refresher on Internal Rate of Return

Harvard Business Review

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. The IRR is the rate at which the project breaks even. According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV.

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A Refresher on Payback Method

Harvard Business Review

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. And it “obviously has to be shorter than the life of the project — otherwise there’s no reason to make the investment.”

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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. Digital companies, in contrast, chase risky projects that have lottery-like payoffs. Risk is now considered a feature, not a bug.

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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.