article thumbnail

The Refresher: Net Present Value

Harvard Business Review

Next time you’re deciding about a big investment, NPV can help you make a more informed decision.

article thumbnail

A Refresher on Net Present Value

Harvard Business Review

(..)

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A Refresher on Net Present Value

Harvard Business Review

(..)

article thumbnail

July's Leadership Carnival

Michael Lee Stallard

Alice Snell presents Public Sector Hiring Reform posted at Taleo Blog – Talent Management Solutions. Art Petty presents Leadership Caffeine: Prepare Your Mind to Conquer Presentation Anxiety posted at Management Excellence. Grossman presents Valuing meaningful work always plays better to the bottom line.

article thumbnail

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. They don’t.

article thumbnail

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. According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV. A Refresher on Net Present Value.

article thumbnail

A Simple Ritual for Harried Managers (and Popes)

Harvard Business Review

The Jesuit Constitutions didn't equip me to do present value calculations. Call to mind some crucial personal objective, or your deepest sense of purpose, or the values you stand for. Third, mentally review the last few hours and extract some insight that might help in the next few hours.