Apply Relevant Investment Criteria
Depending on the structure of a company’s investment portfolio, decision makers may need to apply different criteria in order to highlight differences in the value drivers of various investment types. For example, a strict focus on internal rate of return and payback time may systematically favor incremental improvement investments at the expense of larger breakthrough investments that tend to have longer-term and uncertain payoffs.
The process … [ Read more ]
Authors: Sebastian Stange, Ulrich Pidun | Source: “The Art of Capital Allocation” | Original Publication: Boston Consulting Group | Subjects: Finance, Management, Strategy