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Buy vs. Build Desktop Computer. Team 2 Caitlin DeAngelis Raymond Kurniawan Jose Avila Alfonso Rios. Buy. Build. Intel Core i7-920 Processor (2.66GHz) Windows Vista Home Premium Single 16x DVD Burner 3GB Ram 500 GB Hard Drive ATI Radeon HD 3450 Video Card
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Buy vs. BuildDesktop Computer Team 2 Caitlin DeAngelis Raymond Kurniawan Jose Avila Alfonso Rios
Buy Build • Intel Core i7-920 Processor (2.66GHz) • Windows Vista Home Premium • Single 16x DVD Burner • 3GB Ram • 500 GB Hard Drive • ATI Radeon HD 3450 Video Card • Integrated 7.1 Channel Sound Card
Scenario 1 • Compare Dell vs. Custom Built • Useful life of 4 years • Maintenance will remain constant • Upgrade in the third year • Salvage value in year four • No extended warranty
Sensitivity Analysis • Incrementally change the labor cost of the custom built computer • At $100.00 / hr the custom computer EUAC surpassed the Dell
Sensitivity Analysis Incrementally change the maintenance cost If maintenance cost exceeds $333.99 the Dell becomes a better investment
Sensitivity Analysis Incrementally change the upgrade If upgrade cost exceeds $1350 the Dell becomes a better investment
Scenario 2 • Compare Dell vs. Custom Built • Useful life of 4 years • Maintenance will remain constant • Upgrade in the third year • Salvage value in year four • Extended Warranty • Major component failure in the second year
Assuming complete system failure in the second year If the computer will have to be replaced, the Dell becomes a better investment
Conclusion Scenario1 • Initial conditions favor the custom built computer • Sensitivity Analysis shows alternatives Scenario 2 • Initial conditions favor the Dell computer
Resources • Dell.com • Fry’s • Tiger Direct.com