Clarify Microsoft's explanation of MIRR
The MIRR formula uses the finance rate to discount negative cash flows, but since the only negative cash flow in the example in in the current period, there's nothing to discount.  It's meant to solve problems with IRR like when there are both positive and negative cash flows, which can result in multiple answers for IRR.  The example they give isn't a good one for MIRR because it's a simple spend now, earn later scenario, which IRR is perfectly fine for. If you add a negative cashflow somewhere after the first one you'll see the answer change with difference financing rates. The value does change from 12.61% to 13.48%. The difference between re-investing cashflows at 14% vs 12% is not big enough to change the rounded value. Edit: The initial cashflow is discounted at t0, meaning it's already equal to its present value and the finance rate doesn't have an effect. It does impact future outgoing cashflows, as you've noted.
A business which is completely dependent on highly-skilled labor should /exactly/ construct its workflow to ensure that they keep that skilled labor. It's reason #1 in the article and it is a good reason to allow remote work.  I am close to IBM, I know it is hurting from this strict return to office work - they're too inflexible and have taken the rule too far.   They've simultaneously closed a huge number of offices so they are having serious problems filling dev roles now that they are only located in highly-competitive job markets. I've heard people complain about how stupid the articles at Forbes are.  Now I've had a taste myself.  So basically Microsoft is fucked because: 1. Arnold Toynbee 2. They copy other companies 3. GM went bankrupt in 2009 because they separated management from decisions, and NOT because they took on insanely huge pension obligations over the decades since the 1950s  Got it, great arguments. I have been studying your entries all the way through my morning holiday, and I should admit the entire article has been very enlightening and very well written. I assumed I’d mean you can understand that for a few reason this blog does not view smartly in Internet Explorer 8. I want Microsoft might prevent converting their software. I’ve a question for you. Might you mind changing weblog roll hyperlinks? That may be in reality neat! "&gt; I'm not aware of anyone making a screening tool that can integrate all of these things simultaneously. What is the best environment to create a tool like this?  Everyone has one but they're all proprietary. Most common new stuff I've seen in the HF space are C# or Python. R is growing significantly in the space, but it lends itself to one-off data analysis better than writing large applications that have to do a lot of other ""stuff"", where Python's module universe is more exhaustive.  Everyone is going to recommend whatever languages *they* are comfortable with, but the correct answer is probably whatever *you* are most comfortable with." Add to this that every argument is incredibly generalized with almost no proof or support. I could think of 10 companies that this article could apply to off the top of my head, one being Apple. That said there are as many companies that fall under these same traits that have remained successful.   Maybe it's just really hip to trash talk Microsoft and Forbes is looking to cash in. Perhaps they shouldn't stray from their core competencies (as they've clearly done)?  Plus, consider their competition--bad software interface isn't one of the problems their competition has.  Microsoft really stands out as a loser as a direct result of these continual blunders.  Seriously, if they'd put a touch-based Windows 7 option in their Surface products, I'd consider a purchase right now for the RT (or whatever has the Wacom sketching capacity built into it).  That would work great for what I do, particularly when traveling. Ok so this is the best information I could get!  It is a guarantee from a financial institution that payment will be made for items or services once certain requirements are met.  Let me know if this helps!  I'll try to get more info in the meantime. These issues have probably been part of IBM's computing security standards for some time. I'd imagine it just makes news when specific situations such as Dropbox or Siri get called out. Most major companies have similar policies regarding their data. Encrypt your disks. Don't store stuff on non-company servers. Etc. Your premise is flawed so I'm going to say you have no clue what you're talking about.   Apple is a hardware company first and foremost. Always has been, and likely always will be. So when they see the market they see software as something to give away because software sells hardware.  They make their bread and butter selling computers and device. Not mobile me accounts or OS X or iLife upgrades.   Microsoft is a software company through and through. When they see the market they see a world full of computers that can run their software for a fee.   But that well is drying up, manufacturers are leaving. So what does MSFT do? Get in the hardware game themselves. Because hardware sells software. That's the one and only rational they were willing to drop billions upon billions of dollars into Xbox and make it into an ecosystem.   Sony's problem is that they grew so big they're too big. Most people only see the surface consumer stuff, anchored by fancy TVs or PS3, but they do so much more within B2C and B2B.   Hell, Sony makes, produces, sells, distributes, plays, stores, transfers, enhances media content on various levels. But they're not best of class anymore on any level and the groups don't work hand in hand.   The company is melting down the same way America is melting down. Weak central leadership, competing ideology (how can a company that makes movies sell movie players?), and exponential levels of complexity.   Throw in the multinational field Sony operates in versus the much fewer countries Apple and Microsoft operate in and it's a gigantic mess.   I have a head for systems and big orgs but I do not envy the man that has to push that beast along. You're interpreting things correctly, at least at a high level. Those numbers come from the 10Q filing and investor summary from Microsoft, but are provided to NASDAQ by Zacks Investment Research, as noted on the main page you linked to.  That's a big investment data firm.   I'm not sure why they reported non-GAAP Microsoft numbers and not, say, AAPL numbers; it's possible they felt the non-GAAP numbers reflect things better (or have in the past) for some material reason, or it's possible they made a typo, though the last three quarters at least all used non-GAAP numbers for MSFT.  MSFT indicates that the difference in GAAP and non-GAAP revenue is primarily deferred revenue (from Windows and Halo). I did confirm that the SEC filing for MSFT does include the GAAP number, not the non-GAAP number (as you'd expect). I will also note that it looks like the 10Q is not the only source of information.  Look at ORCL for example: they had in the March 2016 report (period ending 2/29/16) revenues of .50/share GAAP / .64/share non-GAAP.  But the NASDAQ page indicates .59/share for that quarter. My suspicion is that the investment data firm (Zack's) does additional work and includes certain numbers they feel belong in the revenue stream but are not in the GAAP numbers.  Perhaps MS (and Oracle) have more of those - such as deferred software revenues (AAPL has relatively little of that, as most of their profit is hardware). &gt; Microsoft has done a great job with their cloud platforms, revamping the microsoft office suite to compete with google's, their entire surface line of laptops and tablets, purchasing linkedin, etc.  I don't understand the economics of the cloud platforms. I've heard some people say there could be an excess capacity problem like there was 20 years ago with fiber. Is that possible? Windows 8 and server 2013 rock, after you revert the ui to be the same as 7.   The managers who thought forcing a touch UI to every platforms including those without touch were seriously deranged.  Don't use office because VI+LaTeX works better for me! Makes MS tons of money. "Thank you for the great explanation, but there is an aspect of this that has eluded me the 10 times I've attempted to understand it over the years.  When you give the 12-Loddar IOU to the shoemaker, I have two problems of understanding: (a) In October, I am going to owe 12 apple-bushels to ""the economy"", so isn't the 12-Loddar IOU cancelled out?  Really, the 12-Loddar IOU is a pre-order.  (b) If we take your metaphor to the modern age, handwritten IOUs won't work anymore; they have to be central-bank-printed notes; so the central bank does have to expand the money supply, doesn't it?" Customers are regularly confused by software pricing. Microsoft's Windows, for example. Either they're dumb and shouldn't confuse the customers or they know what they're doing. I'm betting the latter.  At 99 bucks, a product can seem expensive, but if the other offerings are 89 and 150, 99 seems like you're saving a lot on the 150 while only paying a bit more than the 99. Yet without those other options, 99 might seem expensive.  Business consumers are more likely to pay more so you can gouge them with the Enterprise edition at 150. 99 for the gold edition and 89 for lite. 99 will sell great and if that's what you were hoping for in the first place, that's good anchoring.  Don't think of the premium getting cannibalised. Just thing of the premium edition as a way to capture the consumer surplus of businesses. I believe the worst part about Surface is running Windows 8.  It's terrible.  Horrible!  And yes, most of the terrible experience for users is that everything is all different now, for little reason, just like shifting to the continual interface revamp of *every* version of Office since 2007.  Change for change's sake?  Users are saying no thanks.  I know not *all* of it is change for change's sake, and I know about the requirement for a new OS to handle a touch-based interface--I get that.  But users have too much interface-change fatigue and are getting tired of paying more and getting less, all the while having to relearn whole systems of interface design that doesn't truly add to their productivity--especially because the next interface change will occur in only 12 - 24 months.  The ribbon interface is a wonderful waste of space, just when every device now made has a much smaller vertical resolution than horizontal (widescreen formats).  So take up much more vertical space so now the user cannot see what they're working on.  Simply brilliant!  Or, they could have put the toolbars off to the side where they would be out of the way--maybe that's the next scheduled interface change?  Put a touch-based Windows 7 OS on Surface and I believe you'd see an instant jump in sales.  Part of my business is fixing/building computers for people.  Many of them have simply purchased the latest laptop/computer/whatever they could find in stores and when they attempt to *use* their nifty new speed machine, they face continual frustration with the bizarre, confusing, and seemingly disconnected double-interface with Windows 8.  The bugs have them utterly baffled, and using skype is a disaster, since they can no longer figure out how to quickly tell skype to use the in-system microphone and webcam for the 13th time this month when receiving a call (like they used to be able to do--never mind that skype continually forgets these settings, as usual).  They also have to create some pointless Microsoft account to use the software/hardware they just purchased.  Why?  People aren't interested in being a card-carrying member of the Mickey Mouse Club anymore--so why *require* it of them?  They generally need to get something productive done, and all this bullshit stands in their way.  Three separated versions of email--that aren't connected at all behind the scenes--is a recipe for confusion.  Another part of my business is industrial design, and with that, the creation of productive, comfortable interfaces.  Here's my secret--good interface design really isn't that difficult--you just need to listen to what the users want.  Bam!  Now even Microsoft can turn things around.