iSixSigma

BBme

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Viewing 6 posts - 1 through 6 (of 6 total)
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  • #208341

    BBme
    Participant

    Greetings @PaulGlenn and welcome to iSixSigma!

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    #198650

    BBme
    Participant

    @leaning69. That reference is terrible because it’s not complete.

    Use this one:

    It should be clear from this description.

    Any other questions, please post.

    0
    #197667

    BBme
    Participant

    Hi Rossy,

    Good question. Have you tried searching the site for past discussions?

    and

    I also recommend you read through “NIST Special Publication 960-12
    Stopwatch and Timer Calibrations”: http://tf.boulder.nist.gov/general/pdf/2281.pdf

    Please post additional question you may have.

    BBME

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    #192113

    BBme
    Participant

    @ueckerc Huh? I’m not your stakeholder. And @Darth is definitely not one of your stakeholders. I think you’re either not understanding the definition of a stakeholder, or you’ve misstated what you’re trying to accomplish by asking your four questions.

    0
    #192112

    BBme
    Participant

    For an internal company calculation, you should use a discount rate in NPV, not an interest rate. The discount rate is the rate of return you could get from an investment with a similar risk profile in the financial markets — for your company. This is going to vary from company to company…your brother’s chimney cleaning service is going to pay higher interest than Lehman Brothers (if they were still around and funded by the government).

    There are a number of methods to calculating the discount rate. If you’re calculating NPV for a company project, you should take the average rate of return from a similar company and use that or use a basket of similar companies. Actually, the easiest way is to just as your CFO so that all your projects are using the correct, “company-blessed”, discount rate.

    If you really wanted to go ninja on your MBB, you should use the weighted average cost of capital (WACC): http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital

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    #191720

    BBme
    Participant

    Love the new site design and it’s great to have you back, Mike.

    0
Viewing 6 posts - 1 through 6 (of 6 total)