Cost and Value
Sunday, March 14, 2010
4:42 PM
Thinking like a businessman
Value: 
direct value: sales of products and/or services. 
indirect value: exposure, market footprint. 
Cost: 
worker salaries (1).
power and air conditioning (2). 
equipment purchases (3). 
Objective function: net profit 
= Value (accounts receivable) 
- Cost (accounts payable). 
Maximize net profit, subject to reality constraints. 