REFURBISH OR REFURBISH OR PURCHASE COMPUTERS PURCHASE COMPUTERS
GROUP #8GROUP #8 SILVA ISAYAN-ORGANIZERSILVA ISAYAN-ORGANIZER GERODO CISNEROS -SUMMARIZERGERODO CISNEROS -SUMMARIZER MARLON ORTIZ- TECH MARLON ORTIZ- TECH JONATHAN LOW- TECHJONATHAN LOW- TECH
XYZ GRAPHICS DESIGN XYZ GRAPHICS DESIGN
WE NEED TO UPDATE OUR WE NEED TO UPDATE OUR COMPUTER SYSTEM IN ORDER COMPUTER SYSTEM IN ORDER TO SERVE OUR ASSOCIATES TO SERVE OUR ASSOCIATES MORE EFFECTIVELY. OUR MORE EFFECTIVELY. OUR CURRENT SYSTEM IS ABOUT 5 CURRENT SYSTEM IS ABOUT 5 YEARS OLD. WE LOOKING FOR YEARS OLD. WE LOOKING FOR MULTIPROCESSOR SYSTEM WITH MULTIPROCESSOR SYSTEM WITH AT LEAST 2GB MEMORY. AT LEAST 2GB MEMORY.
OPTIONS OPTIONS BUY ALL NEW COMPUTERS BUY ALL NEW COMPUTERS
WHICH COME WITH UP TO WHICH COME WITH UP TO DATE PROGRAMS THAT WE DATE PROGRAMS THAT WE NEED NEED
KEEP THE OLD COMPUTERS KEEP THE OLD COMPUTERS AND INSTALL ALL THE AND INSTALL ALL THE PROGRAMS WHICH WE NEED. PROGRAMS WHICH WE NEED.
Technical SpecsTechnical Specs
Processor Intel core 2-duo 2.67 GHz Intel core 2 Quad Q 6600 2.4 GHz
Disc Drive Standard DVD+RW(+R DL) DVD-RAM SONY DVD+RW(+R DL) DVD-RAM
RAM 2GB(2x 1GB) 2GB(2x 1GB)
Hard Drive 160 GB 160 GB
Case Mini Tower Tower
Graphic Card
NVIDIA Quadro FX1500 NVIDIA Quadro FX1500
Main Board Intel 975X Express XFX GeForce 680i L SLI
New Workstation Upgrade
COST COST
COST OF NEW COMPUTERS COST OF NEW COMPUTERS
HP Workstation HP Workstation
Cost Per unit $2,100.99
Total (25units) $52,524.75
COSTCOST COST OF PROGRAMS TO BE INSTALLED COST OF PROGRAMS TO BE INSTALLED
1.1. HARDWARE HARDWARE
2.2. SOFTWARESOFTWARE
Graphics card $549.99
Motherboard w/ Processor $399.99
RAM $129.99
Hard Drive $59.99
Case $49.99
DVD/CD Drive $40.00
Total (per Unit) 1229.95
Installation for all Computers $8400.00 ($336 per unit)
Total ( 25 Units) $39,148.75
MAINTENANCE MAINTENANCE COST OF LABOR FOR INSTALLATION FOR THE COST OF LABOR FOR INSTALLATION FOR THE
UPGRADE = $8,400.00 UPGRADE = $8,400.00 ( which is 336 per unit)( which is 336 per unit)
COST OF INSTALLATION FOR THE HP WORK COST OF INSTALLATION FOR THE HP WORK STATION = $0.00STATION = $0.00
WARRANTY ( product and service)WARRANTY ( product and service) Workstation has 6yrs warranty. Workstation has 6yrs warranty. Parts for the upgrade have Limited Warranty. Parts for the upgrade have Limited Warranty.
(which include manufacturing problems only.) (which include manufacturing problems only.) COST OF TECHNICAL SUPPORTCOST OF TECHNICAL SUPPORT
HP Workstation HP Workstation comes with 6yrs of support ( online and telephone services)comes with 6yrs of support ( online and telephone services) Last year will have a $199p/m maintenance fee = $2,388.00 Last year will have a $199p/m maintenance fee = $2,388.00
Upgrade Option Upgrade Option $199p/m flat fee technical support for all 7 years= $16,716.00$199p/m flat fee technical support for all 7 years= $16,716.00
Present Worth of HP WorkstationPresent Worth of HP Workstation
PWC = 52441.57
Down Pym Payments Maintenance Repairs Software Total PWC
0 10504.80 10504.80 10504.80
1 8070.73 8070.73 7018.02
2 8070.73 8070.73 6102.63
3 8070.73 8070.73 5306.64
4 8070.73 8070.73 4614.47
5 8070.73 1000 10000 19070.73 948152
6 8070.73 2000 10070.73 4353.85
7 8070.73 2388 3000 13458.73 5059.64
Present Worth of UpgradePresent Worth of Upgrade
PWC = 50253.33
Down Pym Payments Maintenance Repairs Software Total PWC
0 7829.75 7829.75 7829.75
1 6015.52 2388.00 8403.52 7307.40
2 6015.52 2388.00 8402.52 6354.27
3 6015.52 2388.00 8402.52 5525.45
4 6015.52 2388.00 8402.52 4808.74
5 6015.52 2388.00 1000 10000 19403.52 9646.98
6 6015.52 2388.00 2000 10403.52 4497.73
7 6015.52 2388.00 3000 11403.52 4287.01
Difference
0
10000
20000
30000
40000
50000
60000
Price MNTNC PWC
HP
UpGrd
Sensitivity Analysis for New HP Workstation
Down Payment
% PWC
5 50,858.77
10 51,386.37
15 51,913.97
20 52,441.57
25 52,969.17
30 53,496.77
Loan Rate
% PWC
6% 50179.8
7% 51301.91
8% 52441.57
9% 53598.54
10% 54772. 41
12% 57169.56
Maintenance Fee
Flat monthly fee PWC
100p/m 56,536.34
150p/m 59,032.59
199p/m 61,478.92
250p/m 64,025.09
300p/m 66,521.34
Warranty
Years PWC
0 61,478.92
1 59,402.39
2 57,596.72
3 56,026.57
4 54,661.23
5 53,473.97
6 52,441.57
7 51,543.83
Sensitivity Analysis for Upgrade Down Payment
% PWC
5 49,073.56
10 49,466.80
15 49,860.08
20 50,253.33
25 50,646.57
30 51,181.16
Maintenance Fee
Flat monthly fee PWC
100p/m 45,310.75
150p/m 47,807.00
199p/m 50,253.33
250p/m 52,799.50
300p/m 55,295.76
Loan Rate
% PWC
6% 48,567.57
7% 49,403.86
8% 50,253.33
9% 51,115.66
10% 51,990.60
12% 53,777.33
Warranty
Years PWC
0 50,253.33
1 48,176.81
2 46,371.13
3 44,800.99
4 43,435.64
5 42,248.38
6 41,215.98
7 40,318.24
Observations
With a lower down Payment the Present Worth of each Option Decreases. But there is a much larger increase in the amount in the payments.
A very large distinguisher between both options was the Maintenance fee.
The price of the new workstation is very high The cost of maintenance of the upgrade option
makes it more expensive then the Workstation.
Buying or UpgradingBuying or Upgrading
There is a more There is a more probable chance in probable chance in buying new buying new computers for a computers for a company due to company due to the hassle of the hassle of maintenance, and maintenance, and its expenses its expenses
Upgrading Problems Upgrading Problems
Hire engineers to Hire engineers to upgradeupgrade
Buy the pieces Buy the pieces (software and (software and hardware ext.)hardware ext.)
Training for Training for employees employees
Extra unknown Extra unknown problemsproblems
Decision Decision
What do you guys What do you guys think we should think we should do? I think we do? I think we should buy new should buy new workstation. workstation.
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