The Basics
Discounting
Net Present Value
Terminal Value
Value Added
The Decisions
Discount Rate
Hurdle Rate
Weighted Average Cost of Capital
(WACC)
The Math
Estimate Terminal
Value
Annuity Method
Market Value/Sales
Compare Methods
DCF Key Questions
Combine Action Plans
Key Points
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Combine the action plans
When you have all the actions plans done, including alternative approaches,
combine their NPV and PVs to calculate the total value added for each
alternative. and for the whole. When you company has a standard cost/benefit template, use it. The GIF provides an example.
(The replay GIF, use the backarrow and return to this page.)
Key Questions |
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A Strategy's Value - Key Points
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