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Desk Top PC Economic Analysis. Sergey W.Vayn & Max L. Lozanguiez. Management Overview. Compared three top performance brands of desktop PCs: Dell, Micron, Gateway 2000 Two Categories of PCs: Top-of-the line Buys & Budget Performance Buys. Recommendations:.
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Desk Top PC Economic Analysis Sergey W.Vayn & Max L. Lozanguiez
Management Overview • Compared three top performance brands of desktop PCs: Dell, Micron, Gateway 2000 • Two Categories of PCs: Top-of-the line Buys & Budget Performance Buys
Recommendations: • Gateway2000 G6-266 & G5-200 • Offers the Best Value for the Money • Best Warranty out of the group • Top Rated System (PC Magazine) • Best Product of 1997 (PC World)
Problem Statement • Purchasing of a Personal Computer for Business or Home • Assumptions: All systems have equal life span Salvage Value at the end of life is zero for all systems 30% Income Tax 5 year life span for all systems
System Specifications Micron Millenia MME 233 • 233Mhz Pentium II with MMX • 64MB RAM • 512KB Cash • 6.4 EIDE HD • 17” (16.0” Viewable) Monitor • 16X CD ROM • 56.6 K Modem • 4MB 3-D Video Card • 32 Bit Sound Card • Win95 & Office97 • 5 year CPU&RAM / 3 year other parts Warranty
Specifications Cont. Micron Millenia MME 200 • 200Mhz Pentium with MMX • 32MB Ram • 512KB Cash • 3.2GB HD • 17” (16.0” Viewable) Monitor • 16X CD ROM • 56.6K Modem • 4Mb Video Card • 32 Bit Sound Card • Win95 & Office97 • 5 year CPU&RAM / 3 year other parts Warranty
Specifications Cont. Dell Dimension XPX H266 • 266Mhz Pentium II • 64MB RAM • 512KB Cash • 6.4GB HD • 17” (15.9 Viewable) Monitor • 16X CD ROM • 33.6K Modem • 100MB Zip Drive • 4MB 3-D Video Card • 32 Bit Sound Card • Win95 & Office97 • 3 year Labor / 1 year on Site Warranty
Specifications Cont. Dell Dimension XPS M200 • 200Mhz Pentium • 32MB RAM • 512KB Cash • 3.2GB HD • 17” (15.9 Viewable) Monitor • 16X CD ROM • 33.6k Modem • 100MB Zip Drive • 4MB Video Card • Win95 & Office97 • 3 year Labor/ 1 year on Site Warranty
Specifications Cont. Gateway 2000 G6-266M • 266Mhz Pentium II with MMX • 64MB RAM • 512KB Cash • 6.4GB HD • 17” (15.9 Viewable) Monitor • 12X /24XCD ROM • 100MB Zip Drive • 4MB 3-D Video Card • 64 Bit Sound Card • 56.6K Modem • Win95 & Office97 • 3 year Labor / 3 year on Site Warranty
Specifications Cont. Gateway 2000 G5-200M • 200Mhz Pentium with MMX • 32MB RAM • 512KB Cash • 3.2GB HD • 17” (15.9 Viewable) Monitor • 12X/24X CD ROM • 100MB Zip Drive • 4MB Video Card • 64 Bit Sound Card • 56.6K Modem • Win95 & Office97 • 3 year Labor / 3 year on Site Warranty
Solution • Used Straight Line Method to generate depreciation charges over the life span • Generated After Tax Cash Flow over the life span using 30% Income Tax • Derived Present Worth of each system using 10% after tax MARR
Economic Calculations Dell XPX H266
Economic Calculations Cont. Dell Dimesion XPS M200
Economic Calculations Cont. Micron Millenia MME 233
Economic Calculations Cont. • Micron Millenia MME 200
Economic Calculations Cont. Gateway2000 G6-266M
Economic Calculations Cont. Gateway2000 G5-200M
Conclusions • Gateway2000 offers the most features for the money • Micron offers great performance at the least price • Dell offers a combination of great performance and features at a premium price
References: • PC Magazine • PC World • www.dell.com • www.micron.com • www.gateway.com