THE BUSINESS DECISION
Begin with the alternatives
Illustrative project scenario
Consider a manufacturer facing increased demand. It can buy equipment, rely on external production, or defer expansion. None of those choices is automatically best: each has different financial commitments, operating dependencies and risks.
Own equipment
Higher upfront investment with greater potential control of long-run capacity.
Use a provider
Less fixed capital, but greater exposure to supplier pricing and availability.
Defer investment
Preserve flexibility while accepting possible capacity or growth constraints.
