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.
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.
--
geni