REFURBISH OR
PURCHASE COMPUTERS
GROUP #8
SILVA ISAYAN-ORGANIZER
GERARDO CISNEROS -TECH
MARLON ORTIZ- TECH
JONATHAN LOW-SUMMARIZER
XYZ GRAPHICS DESIGN
WE NEED TO UPDATE OUR
COMPUTER SYSTEM IN ORDER
TO SERVE OUR ASSOCIATES
MORE EFFECTIVELY. OUR
CURRENT SYSTEM IS ABOUT 5
YEARS OLD. WE LOOKING FOR
MULTIPROCESSOR SYSTEM WITH
AT LEAST 2GB MEMORY.
OPTIONS
BUY ALL NEW COMPUTERS
WHICH COME WITH UP TO
DATE PROGRAMS THAT WE
NEED
KEEP THE OLD COMPUTERS
AND INSTALL ALL THE
PROGRAMS WHICH WE NEED.
Technical Specs
New Workstation Upgrade
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 NVIDIA Quadro FX1500 NVIDIA Quadro FX1500
Card
Main Board Intel 975X Express XFX GeForce 680i L SLI
COST
COST OF NEW COMPUTERS
HP Workstation
Cost Per unit $2,100.99
Total (25units) $52,524.75
COST
COST OF PROGRAMS TO BE INSTALLED
1. HARDWARE
2. SOFTWARE
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
COST OF LABOR FOR INSTALLATION FOR THE
UPGRADE = $8,400.00
( which is 336 per unit)
COST OF INSTALLATION FOR THE HP WORK
STATION = $0.00
WARRANTY ( product and service)
Workstation has 6yrs warranty.
Parts for the upgrade have Limited Warranty.
(which include manufacturing problems only.)
COST OF TECHNICAL SUPPORT
HP Workstation
comes with 6yrs of support ( online and telephone services)
Last year will have a $199p/m maintenance fee = $2,388.00
Upgrade Option
$199p/m flat fee technical support for all 7 years= $16,716.00
Present Worth of HP Workstation
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
PWC = 52441.57
Present Worth of Upgrade
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
PWC = 50253.33
Difference
60000
50000
40000
30000 HP
UpGrd
20000
10000
0
Price MNTNC PWC
Sensitivity Analysis for New HP
Workstation
Down Payment Loan Rate
% PWC
% PWC
6% 50179.8
5 50,858.77
7% 51301.91
10 51,386.37
15 51,913.97 8% 52441.57
20 52,441.57 9% 53598.54
25 52,969.17 10% 54772. 41
30 53,496.77 12% 57169.56
Warranty
Maintenance Fee
Years PWC
Flat monthly fee PWC 0 61,478.92
100p/m 56,536.34
1 59,402.39
150p/m 59,032.59
2 57,596.72
199p/m 61,478.92
3 56,026.57
250p/m 64,025.09
4 54,661.23
300p/m 66,521.34
5 53,473.97
6 52,441.57
7 51,543.83
Down Payment Warranty
60000 70000
50000 60000
50000
40000
40000
PWC
PWC
30000
30000
20000
20000
10000 10000
0 0
1 2 3 4 5 6 1 2 3 4 5 6 7 8 9
percentage Number of Years
Maintenance Fee
Loan Rate
70000
70000
60000
60000
50000
50000
40000
PWC
40000
30000 PWC 30000
20000
20000
10000
10000
0
0
1 2 3 4 5
1 2 3 4 5 6
Flat Montly fee
Percentage
Sensitivity Analysis for Upgrade
Loan Rate
Down Payment
% PWC
% PWC
6% 48,567.57
5 49,073.56
7% 49,403.86
10 49,466.80
8% 50,253.33
15 49,860.08
9% 51,115.66
20 50,253.33
10% 51,990.60
25 50,646.57
12% 53,777.33
30 51,181.16
Maintenance Fee Warranty
Years PWC
Flat monthly fee PWC
0 50,253.33
100p/m 45,310.75
1 48,176.81
150p/m 47,807.00
2 46,371.13
199p/m 50,253.33 3 44,800.99
250p/m 52,799.50 4 43,435.64
300p/m 55,295.76 5 42,248.38
6 41,215.98
7 40,318.24
Sensitivity Analysis for Upgrade
Down Payment Loan Rate
Down Payment 70000.00
60000
60000.00
50000
50000.00
40000
40000.00
PWC
PWC
30000
30000.00
20000
20000.00
10000 10000.00
0 0.00
1 2 3 4 5 6 1 2 3 4 5 6
Percentage percentage
Maintenance Fee Warranty
60000 60000
50000 50000
40000 40000
PWC
PWC
30000 30000
20000 20000
10000 10000
0 0
1 2 3 4 5 1 2 3 4 5 6 7 8 9
Flat Montly Fee Number of Years
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.
Theprice of the new workstation is very high
The cost of maintenance of the upgrade option
makes it more expensive then the Workstation.
Upgrading Problems
Hire engineers to
upgrade
Buy the pieces
(software and
hardware ext.)
Training for
employees
Extra unknown
problems
Decision
In the end we
decided to go with
the HP
Workstations
because they will
be less hazel to fix
technical support.