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Abstract
The author describes a computer model of the research process which makes it possible to distinguish some of the essential issues which need to be faced in financial planning and control of research and development. By exploring a variety of alternatives open to the firm, it is possible to examine the expected financial consequences etc. In summary, a computer model of the research process has been described which lays bare some of the essential elements related to financial analysis and control. When combined with a more general capital budgeting model of the firm, an administrator can select an optimal set of areas, plans for researching these areas and criteria for evaluating the proposals which have been located.
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