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Economic Analysis Team Project

Replacement Analysis (Team 3). Economic Analysis Team Project. Repair or Replace Old Computers. California State Polytechnic University, Pomona. Winter Quarter, 2008. Team Members. Paul S. Cobian -Organizer Mynor Piedrasanta -Techie Spencer Lee -Summarizer.

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Economic Analysis Team Project

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  1. Replacement Analysis (Team 3) Economic Analysis Team Project Repair or Replace Old Computers California State Polytechnic University, Pomona Winter Quarter, 2008

  2. Team Members • Paul S. Cobian -Organizer • Mynor Piedrasanta -Techie • Spencer Lee -Summarizer California State Polytechnic University, Pomona

  3. Replacement Analysis Equipment: Retained or replaced? Defender Challenger Reasons -Obsolescence -Depletion -Deterioration Analysis Technique 3 Compare EUAC Defender – remaining useful life Challenger – minimum cost life

  4. Defender 50 Computers No salvage value Annual Maintenance: $5,000 Increasing by $750 annually Productivity: $50 per computer (decreasing 5% annually) Labor costs: $18 per hour with 3% annual increase.

  5. Challenger 1 (Dell Vostro) $896 per computer 1.6 Ghz 512 MB RAM 80 GB Hard drive Software $33 per computer increases $5 per year Productivity: $350 per computer Decreasing by 5% Maintenance first 3 years free, $50 per computer w/ $10 incr. annually Labor costs: $18/hr with 3% annual incr.

  6. Challenger 2 (HP xw4600) $1545 per computer Duo core 2.33 Ghz 1 GB RAM 250 GB Hard drive Software $33 per computer increases $5 per year Productivity: $525 per computer Decreasing by 5% Maintenance first 3 years free, $50 per computer w/ $10 increase per year Labor costs: $18 per hour with 3% annual increase.

  7. Challenger Comparison HP Wins!

  8. Sensitivity AnalysisHP vs. Dell HP Wins

  9. Defender vs. Hp HP Wins

  10. Sensitivity AnalysisHP vs. Defender HP Wins

  11. Overall Analysis HP Computer Best Option Better alternative (EUAC + Sensitivity) High productivity offsets high cost

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