Equipment Investment – buy it new, lease or buy it used?

The Manufacturing Equipment Investment Calculator is a template that would allow you to evaluate one of the three options that are available when you evaluate opportunities for purchasing manufacturing equipment.

It helps to evaluate three possible choice alternatives: purchase of a new equipment, of a used one or leasing it. It is also possible to evaluate two types of equipment and find out which of these two is more profitable than the other.

Finally, the template provides graphs of how each of the two alternative options of equipment influences the Income and Cash Flow statements.

Functionality of the Manufacturing Equipment Investment Calculator:

  • takes into account various assumptions (e.g., purchase price of equipment, remaining exploitation life, annual load, depreciation, terminal value, etc.);
  • calculates the effect on Income Statement of both equipment projects;
  • calculates the effect on Cash Flow of both equipment projects;
  • compares different scenarios (e.g., new equipment vs. new equipment, new vs. used, used vs. used)
  • graphically describes the effects on the income statement and cash flow.
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