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.