Three principal classes of financial measures for the appraisal of manu- facturing systems are: return on investment, payback, and discounted cash flow. Essentially, return on investment (ROI) is the result of dividing the profit generated by an investment by its cost. The result, however, fails to take into account the time phasing of costs and benefits, and completely ignores the time value of money [1]. Payback measures the duration of recouping an investment, in cash terms. It ignores the benefits that accrue beyond the payback period, a fac- tor crucial for the appraisal of manufacturing systems [2]. For example, a manufacturing system with flexible, computer numeric control (CNC) equipment may have a longer payback period than a system composed of dedicated machines. However, the flexible system may be capable of ac- commodating product design changes easily, resulting in a quicker re- sponse to market variations and in a longer useful life. Discounted cash flow (DCF) measures look at the timing of the cash flows (both revenues and costs) anticipated from an investment, discount- ing the flows to reflect the time value of money. They call for a more