Aucbvax.1640
fa.apollo
utzoo!duke!decvax!ucbvax!DDYER@USC-ISIB
Fri Jun 12 00:53:35 1981
personal computer economics

 While your fundamental argument is correct, you neglected two
important points.

  First, the $10K (or whatever) is not free.  At today's rates,
$10K capital investment costs the company 20% interest, either directly
because they had to borrow it, or indirectly, because they don't have
it to invest elsewhere.  So your increase in productivity would have to
be at least 20% to break even.

 Second, as someone else has pointed out, no one knows how to quantify
the increase (if any) in productivity from something like a star, especially
vis a vis similar software running on less flashy hardware.  This makes
it impossible to "prove" any increase in productivity.
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