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Computers: Make Vs. Buy

Team 7 Kevin Colangelo Jeff Ackerman Jake Zander Joe Simmons. Computers: Make Vs. Buy. You are considering building or buying a new computer and keeping it for at least 2 years The person needs powerful video/gaming capabilities, and high processing power

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Computers: Make Vs. Buy

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  1. Team 7 Kevin Colangelo Jeff Ackerman Jake Zander Joe Simmons Computers: Make Vs. Buy

  2. You are considering building or buying a new computer and keeping it for at least 2 years The person needs powerful video/gaming capabilities, and high processing power You must weigh the cost of components as well as man hours versus the price of a new computer at a store Maintenance, upgrade costs and warranties must also be considered Is it cost effective to build your own computer? Scenario

  3. Computer • CyberpowerPC Gamer Xtreme 2000 • Price: $2,429.99 • Price with two year warranty: $2,569.98

  4. Computer Specs and Prices

  5. Store bought: Cash Flow Diagram $600.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $2569.98

  6. Home built: Cash Flow Diagram $250.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $2101.79

  7. Varying MARR Store bought is always preferred at every MARR % Economic Analysis

  8. Changing labor cost on home built At $17 / month the store bought is more attractive More Economic Analysis

  9. Changing interest rates of payments At 21% the home built computer payment is equal to the store computer at 5% Even More Economic Analysis

  10. Home built preferred when: • Labor cost is less than $17 / Month • Payment interest rate is less than 21% • Store bought preferred when: • At every MARR % • Resources • www.newegg.com • www.frys.com Conclusion

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