Team 7 Kevin Colangelo Jeff Ackerman Jake Zander Joe Simmons.
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Transcript of 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?
Store PC Components:
Separate PC Components:
Price: Warranty:
Intel Core i7 940 Intel Core i7 940 $564.99 3 year
6 GB DDR3 Ram Corsair XMS3 $154.00 Lifetime
1 TB HDD Hitachi 0A38016 $87.99 2 year $19.99
Blue-ray Drive LITE-ON Black $89.99 2 year $19.99
DVD Drive Sony Optirac Black $17.99 2 year $14.99
GeForce GTX 260 (2) GeForce GTX 260 (2) $459.98 Lifetime
1000W PSU Silverstone 0P1000-E $199.99 2 year $39.99
Keyboard / Mouse Microsoft CA9-00001 $16.99 2 year $14.99
Windows Vista (64 bit) Windows Vista (64 bit) $99.99
Case Antec 300 $59.95
Motherboard Gigabyte GA-EX58-UDR3 $199.99 2 year $39.99
Total Price: $1951.85
2 year $149.94
Total Price w/ warranty:
$2101.79
Store bought:
$2569.98
$10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
$600.00
0 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 243
Home built:
$2101.79
$15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15
$250.00
0 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 243
Varying MARR Store bought is always preferred at
every MARR %
MARR Store Home
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)
MARR Comparison
($2,240.00)
($2,220.00)
($2,200.00)
($2,180.00)
($2,160.00)
($2,140.00)
($2,120.00)
($2,100.00)
($2,080.00)
($2,060.00)
MARR %
Pres
ent
Val
ues
@ M
ARR
Store Bought
Home Built
Store Bought ($2,114.91) ($2,123.31) ($2,131.51) ($2,139.54) ($2,147.38) ($2,155.05) ($2,162.55) ($2,169.88)
Home Built ($2,217.44) ($2,218.54) ($2,219.39) ($2,220.30) ($2,221.17) ($2,222.00) ($2,222.79) ($2,223.65)
5% 6% 7% 8% 9% 10% 11% 12%
Changing labor cost on home built At $17 / month the store bought is
more attractive
Labor cost NPV
15 ($2,220.30)
16 ($2,242.41)
17 ($2,264.52)
18 ($2,286.63)
19 ($2,308.74)
20 ($2,330.85)
Labor Cost Impact
($2,340.00)
($2,320.00)
($2,300.00)
($2,280.00)
($2,260.00)
($2,240.00)
($2,220.00)
($2,200.00)
($2,180.00)
($2,160.00)
Net
Pre
sent
Cos
t
Labor Cost Impact ($2,220.30) ($2,242.41) ($2,264.52) ($2,286.63) ($2,308.74) ($2,330.85)
15 16 17 18 19 20
Changing interest rates of payments At 21% the home built computer
payment is equal to the store computer at 5%
Monthly Payment Interest Rate
Store Home
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)
Monthly Payment Variation
($140.00)
($120.00)
($100.00)
($80.00)
($60.00)
($40.00)
($20.00)
$0.00
Monthly Interest Rate
Mon
thly
Pay
men
t
Store Bought ($123.00) ($124.00) ($125.00) ($126.00) ($127.00) ($129.00) ($130.00) ($131.00)
Home Built ($107.00) ($108.00) ($109.00) ($110.00) ($111.00) ($112.00) ($113.00) ($114.00)
5% 6% 7% 8% 9% 10% 11% 12%