Week 10 Reading Reflection

Learning about the NPV method was pretty surprising to me. I've always thought long term and would assume that making financial sacrifices in the present for the future typically pay off. However, I do understand that general economic theory says a dollar today is more valuable than a dollar in a year. I was a little confused about the Contribution Margin Approach. I'm not sure how it works or why it's so necessary and I thought the author could do a better job explaining those things. One question I'd ask the author is, what is the maximum amount of debt a start-up can take on in the first year without failing? I think this is important to know because we live in a society that tends to over-borrow. I'd also ask what the best method is in order to budget capital objectives. I feel like a start up faces so many pending projects that it would be hard to decide which ones are most important. I didn't think the author was wrong about anything but, as I mentioned before, I wish he'd explained the Contribution Margin Approach more thoroughly.