The Industrial Laser is firmly established in metalcutting as the tool of choice for many applications. The elevator division of Montgomery KONE Inc., in an effort to move towards quality, ontime, complete deliveries and 100% customer satisfaction, decided to invest in new equipment to improve manufacturing processes. A huge investment is proposed for a laser-cutting machine. It is the responsibility of Manufacturing Engineering to direct the management by justifying its benefits, which includes payback time and financial gains. Factors such as common line cutting, automated material handling system and cutting time were involved in justification of the initial cost of a laser-cutting machine. Comparative statistics on appropriate factors accurately determine and justify the initial cost of a laser-cutting machine.