1. REFURBISH OR PURCHASE COMPUTERS GROUP #8 SILVA ISAYAN-ORGANIZER SILVA ISAYAN-ORGANIZER GERARDO CISNEROS -TECH GERARDO CISNEROS -TECH MARLON ORTIZ- TECH MARLON ORTIZ- TECH JONATHAN LOW-SUMMARIZER JONATHAN LOW-SUMMARIZER

2. XYZ GRAPHICS DESIGN XYZ GRAPHICS DESIGN WE NEED TO UPDATE OUR COMPUTER SYSTEM IN ORDER TO SERVE OUR ASSOCIATES MORE EFFECTIVELY. OUR CURRENT SYSTEM IS ABOUT 5 YEARS OLD. WE LOOKING FOR MULTIPROCESSOR SYSTEM WITH AT LEAST 2GB MEMORY. WE NEED TO UPDATE OUR COMPUTER SYSTEM IN ORDER TO SERVE OUR ASSOCIATES MORE EFFECTIVELY. OUR CURRENT SYSTEM IS ABOUT 5 YEARS OLD. WE LOOKING FOR MULTIPROCESSOR SYSTEM WITH AT LEAST 2GB MEMORY.

3. OPTIONS BUY ALL NEW COMPUTERS WHICH COME WITH UP TO DATE PROGRAMS THAT WE NEED BUY ALL NEW COMPUTERS WHICH COME WITH UP TO DATE PROGRAMS THAT WE NEED KEEP THE OLD COMPUTERS AND INSTALL ALL THE PROGRAMS WHICH WE NEED. KEEP THE OLD COMPUTERS AND INSTALL ALL THE PROGRAMS WHICH WE NEED.

4. Technical Specs Processor Intel core 2-duo 2.67 GHzIntel core 2 Quad Q 6600 2.4 GHz Disc Drive Standard DVD+RW(+R DL) DVD-RAMSONY DVD+RW(+R DL) DVD-RAM RAM 2GB(2x 1GB) Hard Drive 160 GB Case Mini TowerTower Graphic Card NVIDIA Quadro FX1500 Main Board Intel 975X ExpressXFX GeForce 680i L SLI New WorkstationUpgrade

5. COST COST OF NEW COMPUTERS COST OF NEW COMPUTERS HP Workstation Cost Per unit$2,100.99 Total (25units)$52,524.75

6. COST COST OF PROGRAMS TO BE INSTALLED COST OF PROGRAMS TO BE INSTALLED 1. HARDWARE 2. SOFTWARE Graphics card$549.99 Motherboard w/ Processor$399.99 RAM$129.99 Hard Drive$59.99 Case$49.99 DVD/CD Drive$40.00 Total (per Unit)1229.95 Installation for all Computers$8400.00 ($336 per unit) Total ( 25 Units)$39,148.75

7. MAINTENANCE COST OF LABOR FOR INSTALLATION FOR THE UPGRADE = $8,400.00 COST OF LABOR FOR INSTALLATION FOR THE UPGRADE = $8,400.00 ( which is 336 per unit) COST OF INSTALLATION FOR THE HP WORK STATION = $0.00 COST OF INSTALLATION FOR THE HP WORK STATION = $0.00 WARRANTY ( product and service) WARRANTY ( product and service) Workstation has 6yrs warranty. Parts for the upgrade have Limited Warranty. (which include manufacturing problems only.) COST OF TECHNICAL SUPPORT COST OF TECHNICAL SUPPORT HP Workstation comes with 6yrs of support ( online and telephone services) Last year will have a $199p/m maintenance fee = $2,388.00 Upgrade Option $199p/m flat fee technical support for all 7 years= $16,716.00

8. Present Worth of HP Workstation PWC = 52441.57 Down PymPaymentsMaintenanceRepairsSoftwareTotalPWC 010504.80 18070.73 7018.02 28070.73 6102.63 38070.73 5306.64 48070.73 4614.47 58070.7310001000019070.73948152 68070.73200010070.734353.85 78070.732388300013458.735059.64

9. Present Worth of Upgrade PWC = 50253.33 Down PymPaymentsMaintenanceRepairsSoftwareTotalPWC 07829.75 16015.522388.008403.527307.40 26015.522388.008402.526354.27 36015.522388.008402.525525.45 46015.522388.008402.524808.74 56015.522388.0010001000019403.529646.98 66015.522388.00200010403.524497.73 76015.522388.00300011403.524287.01

10. Difference

11. Sensitivity Analysis for New HP Workstation Down Payment % PWC 550,858.77 1051,386.37 1551,913.97 2052,441.57 2552,969.17 3053,496.77 Loan Rate %PWC 6%50179.8 7%51301.91 8%52441.57 9%53598.54 10%54772. 41 12%57169.56 Maintenance Fee Flat monthly feePWC 100p/m56,536.34 150p/m59,032.59 199p/m61,478.92 250p/m64,025.09 300p/m66,521.34 Warranty YearsPWC 061,478.92 159,402.39 257,596.72 356,026.57 454,661.23 553,473.97 652,441.57 751,543.83

13. Sensitivity Analysis for Upgrade Down Payment % PWC 549,073.56 1049,466.80 1549,860.08 2050,253.33 2550,646.57 3051,181.16 Maintenance Fee Flat monthly feePWC 100p/m45,310.75 150p/m47,807.00 199p/m50,253.33 250p/m52,799.50 300p/m55,295.76 Loan Rate %PWC 6% 48,567.57 7%49,403.86 8%50,253.33 9%51,115.66 10%51,990.60 12%53,777.33 Warranty YearsPWC 050,253.33 148,176.81 246,371.13 344,800.99 443,435.64 542,248.38 641,215.98 740,318.24

14. Sensitivity Analysis for Upgrade Down Payment

15. Observations With a lower down Payment the Present Worth of each Option Decreases. But there is a much larger increase in the amount in the payments. A very large distinguisher between both options was the Maintenance fee. The price of the new workstation is very high The cost of maintenance of the upgrade option makes it more expensive then the Workstation.

16. Upgrading Problems Hire engineers to upgrade Hire engineers to upgrade Buy the pieces (software and hardware ext.) Buy the pieces (software and hardware ext.) Training for employees Training for employees Extra unknown problems Extra unknown problems

17. Decision In the end we decided to go with the HP Workstations because they will be less hazel to fix technical support. In the end we decided to go with the HP Workstations because they will be less hazel to fix technical support.