Desk Top PC Economic Analysis Sergey W.Vayn & Max L.
Lozanguiez
Slide 3
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
Slide 4
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)
Slide 5
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
Slide 6
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
Slide 7
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
Slide 8
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
Slide 9
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
Slide 10
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
Slide 11
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
Slide 12
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
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
Slide 20
References: PC Magazine PC World www.dell.com www.micron.com
www.gateway.com
