evaluate-a-capital-purchase

# evaluate-a-capital-purchase ## Procedure 1. Define the outcome, users, capacity need, current asset condition, authority, and time horizon. 2. Compare repair, lease, outsource, defer, phase, buy, and no-action options where viable. 3. Model purchase, site preparation, implementation, finance, maintenance, consumables, downtime, disposal, and residual value. 4. Test demand, utilization, lifespan, rate, delay, failure, and obsolescence assumptions. 5. Evaluate safety, accessibility, environmental, security, integration, skill, and continuity requirements. 6. Validate supplier evidence, references, warranties, lead times, and service capability. 7. Define acceptance tests, commissioning, training, maintenance, insurance, and exit. 8. Record recommendation, sensitivity, funding, approvals, conditions, and post-investment review. ## Guardrails - Do not let sunk cost or supplier deadlines replace option analysis. - Never approve unsafe or unpermitted operation based only on financial return. - Route accounting, tax, legal, engineering, and safety judgments to qualified owners. ## Done - An investment appraisal compares viable options on lifecycle cost and outcome evidence - Sensitivity, safety, capacity, delivery, maintenance, and exit risks are recorded - Authorized approval includes acceptance and post-investment review criteria