Harvard Business Essentials, Decision Making

There is little doubt that your decisions must take into account

these same considerations. Obviously, some will be more important

to your company than others. But one that always ranks high in the

pecking order of business concerns is financial impact, as deter-

mined by an appropriate financial analysis.

Financial Analysis

When strategic and capital budgeting decisions are at stake, compa-

nies put heavy stress on financial measures of value. After all, busi-

nesses are interested in alternatives that will create the most financial

value for their owners. They focus on the bottom-line impact of

various choices.

Financial value is usually expressed as

net ...