This updated, second edition of Management of Technology and Innovation: Competing Through Technological Excellence offers an understanding of the management of technology and innovation, not in isolation, but as a dynamic integrated system connected to organizational culture, knowledge management and value creation.This book will be an invaluable resource for management students and teachers studying the theory and practice of technology management.

Strategic Evaluation of Technological Investments

Strategic evaluation of technological investments

The most commonly used method of capital investment analysis is the net present value (NPV) or discounted cash flow (DCF) evaluation of investment projects. NPV is the DCF to time zero. NPV represents the expected value of an unrealized gain from the investment over and above a certain rate of return. The latter is the discounting rate. Estimating the future cash flows and choosing an appropriate discount rate are the most important factors in this context. A high discounting or hurdle rate tends to discourage investment in technology change projects. The internal rate of return (IRR) method of evaluating an investment is technically the same as the NPV method. IRR is that discount rate which makes ...

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