The Financial Side of New Technology: Does It Cost or Does It Pay?
Experience and anecdotal evidence tell me that at any given time, nearly every veterinary practice is contemplating a major purchase. Since myriad options compete for your hard-earned money, it’s smart to ask yourself, “Would this purchase be a good investment?”
To answer this question, you need to calculate the internal rate of return (IRR). You don’t need to memorize a complex formula or own a sophisticated business calculator to determine the IRR; Microsoft Excel includes an easy-to-use IRR function. Simply plug in the equipment cost (up-front and ongoing), how often you’ll use it, and how much you’ll charge clients for the service to be provided.
For more information, see Time to Buy That New Toy?