We have developed in this chapter a model that helps evaluate the financial consequences of investment plans, and also allows us to investigate the uncertainty surrounding these results. The model developed has not introduced any significant dynamics, but acted more as a measuring device. For a variety of business models including a financial sector is helpful as a means of conveying model results and understanding the implications of alternative policies.
In many cases, the financial sector in a model will also be an important part of the overall model dynamics. Feedback from cash flow and income changes peoples behavior. In some cases it may be necessary to curtail new investment, or defer maintenance spending in response to low profits or deficient cash balances. The model developed in this chapter provides some of the material to begin to incorporate these effects in your models.
