Buy vs. Build Desktop Computer Team 2 Caitlin DeAngelis Raymond Kurniawan Jose Avila Alfonso Rios.

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Presentation transcript:

Buy vs. Build Desktop Computer Team 2 Caitlin DeAngelis Raymond Kurniawan Jose Avila Alfonso Rios

BuyBuild 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 $ / hr the custom computer EUAC surpassed the Dell

Sensitivity Analysis Incrementally change the maintenance cost If maintenance cost exceeds $ 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