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When purchasing equipment, dont forget the cost of capital

By: Language: English Series: NatWest Agricultural Digest ; (15) January 1987, 7-10(4)Publication details: 1987Subject(s): Summary: Efficiency is seen in terms of controlling costs rather than increasing output. It is suggested that "payback" is now probably the best technique for decisions about purchasing equipment . Essentially this means expecting an item of capital equipment to pay for itself within a specified period. The problems and possibilities of this method are considered with a worked example, and discounted payback, net present value, internal rate of return and net terminal value techniques compared.
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Journal article London Journal article ABS37601 (Browse shelf(Opens below)) 1 Available 5487-1001

Efficiency is seen in terms of controlling costs rather than increasing output. It is suggested that "payback" is now probably the best technique for decisions about purchasing equipment . Essentially this means expecting an item of capital equipment to pay for itself within a specified period. The problems and possibilities of this method are considered with a worked example, and discounted payback, net present value, internal rate of return and net terminal value techniques compared.