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REFURBISH OR PURCHASE COMPUTERS

REFURBISH OR PURCHASE COMPUTERS. GROUP #8 SILVA ISAYAN-ORGANIZER GERARDO CISNEROS -TECH MARLON ORTIZ- TECH JONATHAN LOW-SUMMARIZER. XYZ GRAPHICS DESIGN.

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REFURBISH OR PURCHASE COMPUTERS

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  1. REFURBISH OR PURCHASE COMPUTERS GROUP #8 • SILVA ISAYAN-ORGANIZER • GERARDO CISNEROS -TECH • MARLON ORTIZ- TECH • JONATHAN LOW-SUMMARIZER

  2. 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.

  3. 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.

  4. Technical Specs

  5. COST • COST OF NEW COMPUTERS HP Workstation

  6. COST • COST OF PROGRAMS TO BE INSTALLED • HARDWARE • SOFTWARE

  7. 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

  8. Present Worth of HP Workstation PWC = 52441.57

  9. Present Worth of Upgrade PWC = 50253.33

  10. Difference

  11. Sensitivity Analysis for New HP Workstation

  12. Sensitivity Analysis for Upgrade

  13. Sensitivity Analysis for Upgrade Down Payment

  14. 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.

  15. Upgrading Problems • Hire engineers to upgrade • Buy the pieces (software and hardware ext.) • Training for employees • Extra unknown problems

  16. Decision • In the end we decided to go with the HP Workstations because they will be less hazel to fix technical support.

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