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

2. 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

3. 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

4. Sensitivity Analysis Incrementally change the labor cost of the custom built computer At $100.00 / hr the custom computer EUAC surpassed the Dell

5. Sensitivity Analysis Incrementally change the maintenance cost If maintenance cost exceeds $333.99 the Dell becomes a better investment

6. Sensitivity Analysis Incrementally change the upgrade If upgrade cost exceeds $1350 the Dell becomes a better investment

7. 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

8. Assuming complete system failure in the second year If the computer will have to be replaced, the Dell becomes a better investment

9. Conclusion Scenario1 Initial conditions favor the custom built computer Sensitivity Analysis shows alternatives Scenario 2 Initial conditions favor the Dell computer

10. Resources Dell.com Fry’s Tiger Direct.com