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Desk Top PC Economic Analysis. Sergey W.Vayn & Max L. Lozanguiez. Management Overview. Compared three top performance brands of desktop PCs: Dell, Micron, Gateway 2000 Two Categories of PCs: Top-of-the line Buys & Budget Performance Buys. Recommendations:.

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Desk top pc economic analysis

Desk Top PC Economic Analysis

Sergey W.Vayn & Max L. Lozanguiez


Management overview
Management Overview

  • Compared three top performance brands of desktop PCs:

    Dell, Micron, Gateway 2000

  • Two Categories of PCs:

    Top-of-the line Buys & Budget Performance Buys


Recommendations
Recommendations:

  • Gateway2000 G6-266 & G5-200

  • Offers the Best Value for the Money

  • Best Warranty out of the group

  • Top Rated System (PC Magazine)

  • Best Product of 1997 (PC World)


Problem statement
Problem Statement

  • Purchasing of a Personal Computer for Business or Home

  • Assumptions:

    All systems have equal life span

    Salvage Value at the end of life is zero for all systems

    30% Income Tax

    5 year life span for all systems


System specifications
System Specifications

Micron Millenia MME 233

  • 233Mhz Pentium II with MMX

  • 64MB RAM

  • 512KB Cash

  • 6.4 EIDE HD

  • 17” (16.0” Viewable) Monitor

  • 16X CD ROM

  • 56.6 K Modem

  • 4MB 3-D Video Card

  • 32 Bit Sound Card

  • Win95 & Office97

  • 5 year CPU&RAM / 3 year other parts Warranty


Specifications cont
Specifications Cont.

Micron Millenia MME 200

  • 200Mhz Pentium with MMX

  • 32MB Ram

  • 512KB Cash

  • 3.2GB HD

  • 17” (16.0” Viewable) Monitor

  • 16X CD ROM

  • 56.6K Modem

  • 4Mb Video Card

  • 32 Bit Sound Card

  • Win95 & Office97

  • 5 year CPU&RAM / 3 year other parts Warranty


Specifications cont1
Specifications Cont.

Dell Dimension XPX H266

  • 266Mhz Pentium II

  • 64MB RAM

  • 512KB Cash

  • 6.4GB HD

  • 17” (15.9 Viewable) Monitor

  • 16X CD ROM

  • 33.6K Modem

  • 100MB Zip Drive

  • 4MB 3-D Video Card

  • 32 Bit Sound Card

  • Win95 & Office97

  • 3 year Labor / 1 year on Site Warranty


Specifications cont2
Specifications Cont.

Dell Dimension XPS M200

  • 200Mhz Pentium

  • 32MB RAM

  • 512KB Cash

  • 3.2GB HD

  • 17” (15.9 Viewable) Monitor

  • 16X CD ROM

  • 33.6k Modem

  • 100MB Zip Drive

  • 4MB Video Card

  • Win95 & Office97

  • 3 year Labor/ 1 year on Site Warranty


Specifications cont3
Specifications Cont.

Gateway 2000 G6-266M

  • 266Mhz Pentium II with MMX

  • 64MB RAM

  • 512KB Cash

  • 6.4GB HD

  • 17” (15.9 Viewable) Monitor

  • 12X /24XCD ROM

  • 100MB Zip Drive

  • 4MB 3-D Video Card

  • 64 Bit Sound Card

  • 56.6K Modem

  • Win95 & Office97

  • 3 year Labor / 3 year on Site Warranty


Specifications cont4
Specifications Cont.

Gateway 2000 G5-200M

  • 200Mhz Pentium with MMX

  • 32MB RAM

  • 512KB Cash

  • 3.2GB HD

  • 17” (15.9 Viewable) Monitor

  • 12X/24X CD ROM

  • 100MB Zip Drive

  • 4MB Video Card

  • 64 Bit Sound Card

  • 56.6K Modem

  • Win95 & Office97

  • 3 year Labor / 3 year on Site Warranty


Solution
Solution

  • Used Straight Line Method to generate depreciation charges over the life span

  • Generated After Tax Cash Flow over the life span using 30% Income Tax

  • Derived Present Worth of each system using 10% after tax MARR


Economic calculations
Economic Calculations

Dell XPX H266


Economic calculations cont
Economic Calculations Cont.

Dell Dimesion XPS M200


Economic calculations cont1
Economic Calculations Cont.

Micron Millenia MME 233


Economic calculations cont2
Economic Calculations Cont.

  • Micron Millenia MME 200


Economic calculations cont3
Economic Calculations Cont.

Gateway2000 G6-266M


Economic calculations cont4
Economic Calculations Cont.

Gateway2000 G5-200M


Conclusions
Conclusions

  • Gateway2000 offers the most features for the money

  • Micron offers great performance at the least price

  • Dell offers a combination of great performance and features at a premium price


References
References:

  • PC Magazine

  • PC World

  • www.dell.com

  • www.micron.com

  • www.gateway.com



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