Team 7 Kevin Colangelo Jeff Ackerman Jake Zander Joe Simmons
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?
CyberpowerPC Gamer Xtreme 2000 Price: $2, Price with two year warranty: $2,569.98
Store PC Components:Separate PC Components:Price:Warranty: Intel Core i7 940 $ year 6 GB DDR3 RamCorsair XMS3$154.00Lifetime 1 TB HDDHitachi 0A38016$ year $19.99 Blue-ray DriveLITE-ON Black$ year $19.99 DVD DriveSony Optirac Black$ year $14.99 GeForce GTX 260 (2) $459.98Lifetime 1000W PSUSilverstone 0P1000-E$ year $39.99 Keyboard / MouseMicrosoft CA $ year $14.99 Windows Vista (64 bit) $99.99 CaseAntec 300$59.95 MotherboardGigabyte GA-EX58-UDR3$ year $39.99 Total Price:$ year $ Total Price w/ warranty:$
Store bought: $ $10 $
Home built: $ $15 $
Varying MARR Store bought is always preferred at every MARR % MARRStoreHome 12%($2,169.88)($2,223.65) 11%($2,162.55)($2,222.79) 10%($2,155.05)($2,222.00) 9%($2,147.38)($2,221.17) 8%($2,139.54)($2,220.30) 7%($2,131.51)($2,219.39) 6%($2,123.31)($2,218.54) 5%($2,114.91)($2,217.44)
Changing labor cost on home built At $17 / month the store bought is more attractive Labor costNPV 15($2,220.30) 16($2,242.41) 17($2,264.52) 18($2,286.63) 19($2,308.74) 20($2,330.85)
Changing interest rates of payments At 21% the home built computer payment is equal to the store computer at 5% Monthly Payment Interest Rate StoreHome 12%($131.00)($114.00) 11%($130.00)($113.00) 10%($129.00)($112.00) 9%($127.00)($111.00) 8%($126.00)($110.00) 7%($125.00)($109.00) 6%($124.00)($108.00) 5%($123.00)($107.00)
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