Think about a major capital equipment purchase you had made in recent years for your family...

Think about a major capital equipment purchase you had made in recent years for your family . this could be a car, dishwasher , computer, etc. Create a list of financial reasons that justify the purchase. What were the financial benefits of making the purchase? What would be the financial negatives if you had not made the purchase?

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Recently I made a purchase of computer. This can be classified under a capital equipment. There are many reason are there behind this purchase. There are many financial benefits and some financial negatives are happend because of this purchase.

The reason behind this purchase I need this capital equipment for my work purpose. If I want to earn from work then I should have a computer. So this is related with the work. So for proper working we need some capital equipments. And also we need to maintain it from time to time. This is the reason for the purchase. When we are looking for the financial benefits there are many benefits we can see. There will be return from this. This can be considered as an input which can generate output. If we are properly using this input then it will helps to generate income. So that is a return. These can also be considered as a fixed asset and it has replace value. We can sell it and earn from this in the future. So these are some financial benefit from this. When we are talking about financial negatives ofcourse there are some financial negatives. We need capital to purchase this equipment. There are maintanance charge is there and depreciation is also there. So we need to spend money on this capital equipment. These are some financial negatives. Eventhough if we are properly utilising this equipment then it will definitely be a benefit for us.

ThankYou....

jeff jeffy answered 1 year ago

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Think about a major capital equipment purchase you had made in recent years for your family...

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