2. Desk Top PC Economic Analysis Sergey W.Vayn & Max L. Lozanguiez

3. 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

4. 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)

5. 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

6. System Specifications Micron Millenia MME 233 233Mhz 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

7. Specifications Cont. Micron Millenia MME 200 200Mhz 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

8. Specifications Cont. Dell Dimension XPX H266 266Mhz 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

9. Specifications Cont. Dell Dimension XPS M200 200Mhz 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

10. 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

11. 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

12. 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

13. Economic Calculations Dell XPX H266

14. Economic Calculations Cont. Dell Dimesion XPS M200

15. Economic Calculations Cont. Micron Millenia MME 233

16. Economic Calculations Cont. Micron Millenia MME 200

17. Economic Calculations Cont. Gateway2000 G6-266M

18. Economic Calculations Cont. Gateway2000 G5-200M

19. 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

20. References: PC Magazine PC World www.dell.com www.micron.com www.gateway.com

21. Bonus