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Replacement Analysis (Team 3). Economic Analysis Team Project. Repair or Replace Old Computers. California State Polytechnic University, Pomona. Winter Quarter, 2008. Team Members. Paul S. Cobian -Organizer Mynor Piedrasanta -Techie Spencer Lee -Summarizer.

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Economic analysis team project

Replacement Analysis (Team 3)

Economic Analysis Team Project

Repair or Replace Old Computers

California State Polytechnic University, Pomona

Winter Quarter, 2008


Team members
Team Members

  • Paul S. Cobian -Organizer

  • Mynor Piedrasanta -Techie

  • Spencer Lee -Summarizer

California State Polytechnic University, Pomona


Replacement analysis
Replacement Analysis

Equipment: Retained or replaced?

Defender

Challenger

Reasons

-Obsolescence

-Depletion

-Deterioration

Analysis Technique 3

Compare EUAC

Defender – remaining useful life

Challenger – minimum cost life


Defender
Defender

50 Computers

No salvage value

Annual Maintenance: $5,000

Increasing by $750 annually

Productivity: $50 per computer (decreasing 5% annually)

Labor costs: $18 per hour with 3% annual increase.


Challenger 1 dell vostro
Challenger 1 (Dell Vostro)

$896 per computer

1.6 Ghz

512 MB RAM

80 GB Hard drive

Software $33 per computer increases $5 per year

Productivity: $350 per computer Decreasing by 5%

Maintenance first 3 years free, $50 per computer w/ $10 incr. annually

Labor costs: $18/hr with 3% annual incr.


Challenger 2 hp xw4600
Challenger 2 (HP xw4600)

$1545 per computer

Duo core 2.33 Ghz

1 GB RAM

250 GB Hard drive

Software $33 per computer increases $5 per year

Productivity: $525 per computer Decreasing by 5%

Maintenance first 3 years free, $50 per computer w/ $10 increase per year

Labor costs: $18 per hour with 3% annual increase.



Sensitivity analysis hp vs dell
Sensitivity AnalysisHP vs. Dell

HP Wins



Sensitivity analysis hp vs defender
Sensitivity AnalysisHP vs. Defender

HP Wins


Overall analysis
Overall Analysis

HP Computer Best Option

Better alternative (EUAC + Sensitivity)

High productivity offsets high cost


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