Question
In finance we think about the tradeoffs between costs and benefits. NPV and other analytics are decision-making tools where we quantify estimated costs and future
In finance we think about the tradeoffs between costs and benefits. NPV and other analytics are decision-making tools where we quantify estimated costs and future benefits. Sometimes it is beneficial to think about quantifying more abstract things that don't have an objective measurable price. Here is an exercise in that type of managerial thinking. What's the cost of doing a poor job? What's the cost of doing a mediocre job? What's the cost of doing an exceptional job? Which price are you willing to pay? Couch your responses in finance terms using concepts like NPV etc. In some cases doing a less than stellar job might be the appropriate decision, it the future benefits don't warrant more. Think about all the future benefits such as monetary, reputation, opportunities, etc.
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