Harvard Business Review

SEPTEMBER 15, 2017

They particularly overpay when the interest rate – the rate of return required by the bank – is high, just as firms particularly repurchase when the stock price is low and thus the rate of return required by shareholders is high. It takes no skill to simply spend money.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

APRIL 30, 2015

Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. In many businesses, the cost of capital is lower than the discount rate or the required rate of return. or 11% as the discount rate. x 4.3%) + (0.7

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

APRIL 16, 2012

high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g., energy or telecom) or research-intensive industries (e.g.,

Company 14

Company Cost of Capital Finance Long-term 14

Strategy Driven

DECEMBER 31, 2020

If the situation makes you invest in the short-term project to gain quick capital initially, you may later invest your ROI into a long-term project. Therefore, it’s a trusted and proven way to receive a consistent return. Traditionally, stock markets offer the highest rates of return. Invest in Stocks.

Short-term 67

Short-term Real Estate Long-term Strategy 67

Harvard Business Review

JULY 31, 2014

Finally, venture philanthropists are willing to invest in projects like Khan’s that can reach millions of people with a modest amount of money. If the social enterprise delivers on the promise of reducing the recidivism rate relative to current best practice, the investors receive their capital back and a capped but attractive rate of return.

Bond 13

Bond Education Finance Video 13

Harvard Business Review

JUNE 8, 2018

Morgan projected up to $1T in investment would be deployed this decade — which would make impact investing twice the size of official development aid to the world’s less develop countries (as defined by the United Nations) , presuming historic levels of aid stayed constant since 2010. Erik Dreyer/Getty Images. In 2010, J.P

Microfinance 8

Microfinance IPO Real Estate Industry 8

Harvard Business Review

OCTOBER 21, 2016

billion in mining projects since 2010. One study estimated that companies experience an average internal rate of return of 27% to 80% on their low carbon investments. . “Stranded assets” are investments that become obsolete due to regulatory, environmental, or market constraints. Fostering innovation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

MARCH 28, 2018

Even when contributions are made, 401(k)s tend to earn subpar returns on average due to limited investment strategies and high administrative expenses. Employees in defined contribution plans often do not have significant investing expertise and earn rates of return that are substantially below professionally managed pension plans.

Asset Management 11

Asset Management Crisis Cost Planning 11

Harvard Business Review

FEBRUARY 8, 2018

We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario. China’s military buildup now allows it to project power across those sea lanes, challenging the freedom of navigation guaranteed by the U.S.

Market Risk 10

Market Risk Marketing Supply Chain Company 10