Who said anything about APM only being used by laptops?
Posted Apr 5, 2011 6:46 UTC (Tue) by giraffedata
In reply to: Who said anything about APM only being used by laptops?
Parent article: Powering down APM
It's true that there are lots of other benefits to replacing CRTs, and costs as well, that we haven't even begun to talk about. But this thread is about the proper way to balance the purchase price of an LCD monitor against the electricity savings. In the example I gave, the proposer said the electricity savings would pay for the purchase. He was wrong.
No company has enough cash that it can invest for free. A company has cash because it believes in the near future it will have an opportunity to invest it at a higher rate of return than right now. Spending that cash on LCD monitors would deprive it of that opportunity, so the monitors would have to return more than whatever else the company had in mind for that cash. Also, even "cash" earns interest, so the electricity savings (and whatever other benefits there are to monitors purchased with that cash) must at least exceed that interest.
Incidentally, the reason that return on investment in the core business is usually the proper alternative to compare is that management always believes it can make more money off the core business than anything else. Otherwise, it would dissolve the company and return the assets to the stockholders. A business' other investments are normally short term financing for long term core business investment.
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