Wednesday, January 28, 2015

Will Adding More Cash to your Project Help it?

If you keep adding more seeds within a given plot of land, they reach a point where no matter how many more seeds you add, the final harvest at the end just does not increase any more. This is due to the limited amount of resources present in that plot of land. If more nutrients are added, the harvest may increase further beyond the earlier point when less nutrients were available yet still adding more seeds will not increase the harvest.

In the business world, adding more and more cash to support a project might not always be the wisest idea. a project would reach a point where any additional cash added to support it would just not be increasing the 'harvest' (the profit or even the revenue) of the project at the end. It is thus wise to know when to stop injecting more and more cash into a project because it could have a certain capacity that cannot be exceeded.