- [Instructor] Let's see how someone might answer this question and I'll be back to share some feedback. - So, I think there are two important aspects when evaluating this, the first is establishing a quantitative or financial analysis on how it impacts the company. The second involves qualitative decision-making through talking with key stakeholders. Purchasing any type of equipment is a long-term investment and has to add value to the organization for the life of the asset. So, the asset must deliver a return on the financial investment. Typically, I would use a net present value approach, calculating based on either the company's expected ROI, or assessing the company's ROI requirements. Once I understand the asset's life, the incoming revenue that's generated and the outgoing cash flows, I'd be able to determine whether the equipment is a good investment. Depending on the equipment's purpose and information available…
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