A company manufacturing high precision polycarbonate plastic lenses wants to expand its manufacturing operations. The company is financially reasonably sound and has sufficient funds for expansion. For the purchase of machinery, the management has two options

Option 1: Purchase new machinery by taking a bank loan

Option 2: Purchase second-hand used machinery by utilizing its own funds.

Is it advisable for the company to purchase used equipment/machinery? What are the sources of used equipment/machinery?