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Politics : Ask Michael Burke

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To: Freedom Fighter who wrote (70968)11/23/1999 8:51:00 PM
From: Don Lloyd  Read Replies (1) of 132070
 
Wayne -

[[ I believe your example is one where the existing investment capital is becoming more efficient. I'll have to give this scenario some more thought but I think in the end the ROC should revert to "some" required rate depending on the business.

I don't think this is typical for much of the economy. Usually, companies in aggregate add to their invested capital and produce progressively higher profits without much change in the real return on that capital over time. ]]

I'm not comfortable with your use of ROC in these arguments. The ROC IS important at the go/no go planning end, but once the decisions are made the later final results are dependent on both consumer demand at that time and what real and potential competitors have done in the meantime. No plan of battle survives first contact with the enemy.

Regards, Don



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