Jim Feeley
Veteran
Really thoughtful post Ned. Thanks for that. Maybe pitch it as an article to your favorite high-volume website/blog so more can read it?
Speaking of whether buying a particular bit of kit makes good business sense, Frank Capria came up with this nice Excel spreadsheet about 10 years ago (after 20ish years as a PBS editor, post sup, etc...and then some more as a straight-up MBA business guy). Here's the text from his blog page and then a link to that page where you can download the spreadsheet:
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Equipment purchase calculator
June 7, 2006 8:43 am | 3 Comments | Frank Capria
Conflicted about which piece of equipment to buy? A colleague is considering a major capital expenditure, so I reworked an Excel spreadsheet I developed last year that compared Avid and Final Cut Pro systems to be more generic. I thought I’d post it here as well.
Input the price of each system, the percent you plan on financing, the finance rate, and your internal rate of return. Internal rate of return is your opportunity cost. If the capital to purchase this equipment were to be invested elsewhere, how much would you expect to make? Ten percent is a standard benchmark.
The spreadsheet uses a macro, so Excel will pop up a warning. Click through it and you are good to go.
Download here:
http://www.capria.tv/2006/06/equipment-purchase-calculator/comment-page-1/
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It's helped me separate "want" from "need" a few times...
Speaking of whether buying a particular bit of kit makes good business sense, Frank Capria came up with this nice Excel spreadsheet about 10 years ago (after 20ish years as a PBS editor, post sup, etc...and then some more as a straight-up MBA business guy). Here's the text from his blog page and then a link to that page where you can download the spreadsheet:
=====
Equipment purchase calculator
June 7, 2006 8:43 am | 3 Comments | Frank Capria
Conflicted about which piece of equipment to buy? A colleague is considering a major capital expenditure, so I reworked an Excel spreadsheet I developed last year that compared Avid and Final Cut Pro systems to be more generic. I thought I’d post it here as well.
Input the price of each system, the percent you plan on financing, the finance rate, and your internal rate of return. Internal rate of return is your opportunity cost. If the capital to purchase this equipment were to be invested elsewhere, how much would you expect to make? Ten percent is a standard benchmark.
The spreadsheet uses a macro, so Excel will pop up a warning. Click through it and you are good to go.
Download here:
http://www.capria.tv/2006/06/equipment-purchase-calculator/comment-page-1/
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It's helped me separate "want" from "need" a few times...
