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Model Building from the Ground Up

ConversionXL

Throwing $300k at something that “feels right” could have huge opportunity costs. If you’d like to purchase the site, opportunity cost of investment may be the way to go. If net profit is a criterion, do you have equipment costs? Labor requirements and costs? Is your KPI net present value of the project?

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10 Things I Hated About Your Business Pitch

Up and Running

You focused on internal rates of return and net present value. I’m glad they taught you internal rates of return and net present value in business school. They are assumptions cascading on assumptions, presented as if they were statistical truth. Not discounted cash flow. I’m not alone in this.

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10 Things I hated About Your Business Pitch

Up and Running

Internal rates of return and net present value. I’ll judge your projections for realism and credibility, but that’s sales, costs, expenses, cash flow, and other basic numbers. Not just disruptive , but market-leading , and viral , and pivot. I’m glad they taught you that in business school.

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Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

It is mathematically impossible for the median investor to beat a low-cost index, after expenses. (Of Of course, asset management firms also sell peace of mind, tax minimization, and other services besides just increasing the value of your assets.). I don’t think that a Net Present Value calculation is appropriate for every company.