Desk Top PC Economic Analysis Sergey W.Vayn & Max L. Lozanguiez
Management Overview Compared three top performance brands of desktop PCs: Dell, Micron, Gateway 2000 Two Categories of PCs: Top-of-the line Buys & Budget Performance Buys
Recommendations: Gateway2000 G6-266 & G5-200 Offers the Best Value for the Money Best Warranty out of the group Top Rated System (PC Magazine) Best Product of 1997 (PC World)
Problem Statement Purchasing of a Personal Computer for Business or Home Assumptions: All systems have equal life span Salvage Value at the end of life is zero for all systems 30% Income Tax 5 year life span for all systems
System Specifications Micron Millenia MME Mhz Pentium II with MMX 64MB RAM 512KB Cash 6.4 EIDE HD 17” (16.0” Viewable) Monitor 16X CD ROM 56.6 K Modem 4MB 3-D Video Card 32 Bit Sound Card Win95 & Office97 5 year CPU&RAM / 3 year other parts Warranty
Specifications Cont. Micron Millenia MME Mhz Pentium with MMX 32MB Ram 512KB Cash 3.2GB HD 17” (16.0” Viewable) Monitor 16X CD ROM 56.6K Modem 4Mb Video Card 32 Bit Sound Card Win95 & Office97 5 year CPU&RAM / 3 year other parts Warranty
Specifications Cont. Dell Dimension XPX H Mhz Pentium II 64MB RAM 512KB Cash 6.4GB HD 17” (15.9 Viewable) Monitor 16X CD ROM 33.6K Modem 100MB Zip Drive 4MB 3-D Video Card 32 Bit Sound Card Win95 & Office97 3 year Labor / 1 year on Site Warranty
Specifications Cont. Dell Dimension XPS M Mhz Pentium 32MB RAM 512KB Cash 3.2GB HD 17” (15.9 Viewable) Monitor 16X CD ROM 33.6k Modem 100MB Zip Drive 4MB Video Card Win95 & Office97 3 year Labor/ 1 year on Site Warranty
Specifications Cont. Gateway 2000 G6-266M 266Mhz Pentium II with MMX 64MB RAM 512KB Cash 6.4GB HD 17” (15.9 Viewable) Monitor 12X /24XCD ROM 100MB Zip Drive 4MB 3-D Video Card 64 Bit Sound Card 56.6K Modem Win95 & Office97 3 year Labor / 3 year on Site Warranty
Specifications Cont. Gateway 2000 G5-200M 200Mhz Pentium with MMX 32MB RAM 512KB Cash 3.2GB HD 17” (15.9 Viewable) Monitor 12X/24X CD ROM 100MB Zip Drive 4MB Video Card 64 Bit Sound Card 56.6K Modem Win95 & Office97 3 year Labor / 3 year on Site Warranty
Solution Used Straight Line Method to generate depreciation charges over the life span Generated After Tax Cash Flow over the life span using 30% Income Tax Derived Present Worth of each system using 10% after tax MARR
Economic Calculations Dell XPX H266
Economic Calculations Cont. Dell Dimesion XPS M200
Economic Calculations Cont. Micron Millenia MME 233
Economic Calculations Cont. Micron Millenia MME 200
Economic Calculations Cont. Gateway2000 G6-266M
Economic Calculations Cont. Gateway2000 G5-200M
Conclusions Gateway2000 offers the most features for the money Micron offers great performance at the least price Dell offers a combination of great performance and features at a premium price
References: PC Magazine PC World
Bonus