Congratulations! You are a proud owner of an engraving business. However, you are using an aging rotary engraver to engrave plaques and trophies. The machine has been reliable, but does require regular maintenance and periodic replacement of parts. You have just found out that this engraver will no longer be supported by the manufacturer. This means that service and parts will be hard to get in the future and if it breaks it could take up to three weeks to get a new one up and running. You keep this machine running almost 8 hours a day, every day. Every day that the engraver is down will cost around $975 in lost income.
If you have to buy a new engraver, it would cost around $25,000.
You can get a one-year loan at 12% to buy a new engraver, but you worry that this is a lot of money to spend, especially since the old engraver is still working fine. You have to make a decision.
In this discussion, pose you argument on whether you should purchase a new engraver now or wait until the old engraver breaks before ordering a new engraver?
To help you construct your argument answer the following steps:
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