geni wrote:
On 7/28/06, Ray Saintonge <saintonge(a)telus.net>
wrote:
That wouldn't do it. Cash and equipment are
both assets on a balance
sheet. If it ever came to that, either could be used to satisfy a
debt. Buying hardware just so that it can have an opportunity to
depreciate does not seem like a sensible strategy.
It reduces the value of your balance sheet. which reduces your
atrativeness as a target.
Making purchases where the only reason is to reduce the asset value on
the balance sheet does not strike me as sound fiscal management.
Although
it's
important to plan for equipment breakdown and obsolescence there is also
a value to delaying purchases. The same $10,000 that you might spend
prematurely today for a desired piece of equipment might give you a more
advanced piece of similar equipment a year from now.
But we need the equipment now.
That's usually a good reason for buying new equipment.