### Project Description

## Preservation of Value

#### Surplus = Period Profit

**ISBN 9798637745296***
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Already the Introduction of this book is amazing.

Financing a car easily for your whole active life, it’s completely noted down in the Introduction. Fully explained, easy understandable and not to be missed by anyone, in order to permanently avoid financial troubles about your car.

A car, any profit-centre, also Blue Chips at the Stock Exchange, the same reckoning accounts for all. Because, almost every balance sheet line is mutually identical in principle. Ground, buildings, inventory, stock, liquidities, etcetera, are different shapes of value. A unit monetary asset, a unit stock and also a working-unit of a tangible fixed asset can be written down as respectively unit A, unit B and unit C. Each asset has a name and a value(-interval) at each and every moment the balance sheet is drawn up. Again and again the issue at stake is a certain amount of units multiplied by the price per unit. Monetary assets are in fact also a quantity, an amount of markers at a certain price each.

Aristotle thought that heat was a primary quantity, a basic thing. It still lasted till around 1840 before the German doctor Julius Robert Mayer and the British brewer James Prescott Joule came to the formulation of what today is acknowledged as the law of conservation of energy. Analogous to the law of conservation of energy in physics, the law of PRESERVATION OF VALUE holds true in economics, a natural law. No value can disappear or appear as if by magic.

It has been explained in a very understandable way, for everyone, even laymen. The key matter about what happens with a car financially. A not to be missed Introduction in this very special book that has led to The Profit Formula®. Read this book, already the Introduction earns the Nobel prize (indeed I got this compliment!) for giving assistance to almost anyone forever.

No one (outside of my books) has ever seen an uncontested profit figure. In this book, some profit calculation systems are discussed. How many people lose the scent while walking the necessary detours with no matter which one of the old profit calculation systems? The author gives his criticism and comments on main points and he delivers his elaborations of some exemplary problems that are demonstrated in literature. In business economics, long deliberations are not at all necessary. On close inspection, money units are involved, which can be and must be counted. Nonsense becomes evident of itself ultimately, if as and when the counts do not fit.

The last section 8.4 titled ‘A Side-Note Regarding The Present Value Method’ contains my criticism with regard to the measures of investment worth, which are described in economic literature and widely used. The best method (at least a good one) to evaluate investment proposals would be the Net Present Value method or (a variant) the method of the Internal Rate of Return, according to many economists. It is indeed by far a better measure of investment worth than a lot of really bad methods, but nevertheless it does not have a general validity. An investment implicates often at least one (possible) re-investment. If so then the real total profit is not identical to the receipts minus the (initial) cash outlays. Only nominalism has been covered. The NPV / IRR-method neglects substantialism. More about this in Appendix 10.2 from the book The Profit Formula® ISBN 9781086333992 available at www.amazon.com.

By measuring subsequent period profits as accurately as possible after done investments, one can have the corporation at one’s finger tips. Triggering the whole operation. At the least little indicator one can give appropriate guidance on the necessary adjustment required. By not knowing the real period profit, one loses control.