There is a general challenge offered to the field of engineering economics by the introduction of advanced technologies. A survey of the existing literature on evaluation of advanced information and manufacturing system indicate that the traditional approaches are inadequate for economic evaluation techniques used in its appraisal, difficulty in evaluating the potential benefits and criteria used to assess management performance. In this paper, an attempt has been made to overcome the above deficiencies by presenting an approach to account for the justification and selection of the Local Area Network(LAN) architectures. This is based on the Analytic Hierarchy Process(AHP) and is capable of taking into account many intangible factors as well. The usefulness of the proposed approach is demonstrated through a case situation and sensitivity analysis. Finally, some research directions for future work are identified.