The information provided in an equipment specification helps guide the acquisition process. Briefly outline the parameters that influence decisions or information that might be provided in a product specification in each of the following areas.

a)Operational constraints for design features, for example, floorplans, numbers, typ and locations of existing fixtures, fittings and furniture

b) Types of products and services offered by the workplace

c)Operational performance requirements

d)Budget parameters

e)Environmental sustainability policies

The company car needs to be replaced. The current car is on an operational lease which expires at the end of next month. You are trying to decide if it is more financially viable to purchase the new vehicle instead of leasing it.

23. What is one benefit and one drawback to purchasing this physical asset?

a)Benefit

b)Drawback

24. After researching different vehicles, quotes were obtained to purchase a Toyota Tarago.

Bill Bobbins Toyota - $48,990

Redwood Motors - $47,890

Annual servicing was estimated at $2,000, registration, insurance and other expenses another $1,800. It would be depreciated using the diminishing value method with an effective life of five years. Depreciation is tax deductable.

The business's current lease company has quoted $355 per week for a five-year lease for the vehicle. This includes all vehicle servicing, comprehensive insurance and roadside assistance. Monthly lease payments are fully tax deductable.

Use the information provided to determine the costs associated with each option and any depreciation.

Based on your calculations, which option would you recommend? Briefly explain how you came to this conclusion and what factors influenced your recommendation.