Economic Analysis Team ProjectTeam MembersReplacement AnalysisDefenderChallenger 1 (Dell Vostro)Challenger 2 (HP xw4600)Challenger ComparisonSensitivity Analysis HP vs. DellDefender vs. HpSensitivity Analysis HP vs. DefenderOverall AnalysisEconomic Analysis Team ProjectEconomic Analysis Team ProjectCalifornia State Polytechnic University, PomonaReplacement Analysis (Team 3)Winter Quarter, 2008Repair or Replace Old ComputersTeam MembersTeam Members•Paul S. Cobian -Organizer•Mynor Piedrasanta -Techie•Spencer Lee -SummarizerCalifornia State Polytechnic University, PomonaReplacement AnalysisReplacement Analysis•Equipment: Retained or replaced?–Defender–Challenger•Reasons-Obsolescence-Depletion-Deterioration•Analysis Technique 3–Compare EUAC•Defender – remaining useful life•Challenger – minimum cost lifeDefenderDefender50 Computers•No salvage value•Annual Maintenance: $5,000Increasing 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.Challenger ComparisonChallenger Comparison Dell EUAC HP EUAC0 Total Total1-$32,534.00-$58,830.002 -$9,813.33-$20,783.133 -$2,559.73 -$8,108.244 -$1,112.14 -$4,478.325 -$1,563.48 -$2,814.056 -$701.41 -$947.247 -$267.30 $192.488 -$105.21 $880.809 -$134.30 $1,265.0610 -$312.22 $1,427.7811 -$618.63 $1,415.2212 -$1,047.29 $1,251.5613 -$1,601.99 $946.2114 -$2,294.64 $497.7015 -$3,144.41 -$104.22HP Wins!Sensitivity AnalysisSensitivity AnalysisHP vs. DellHP vs. DellMaintenance Cost Choose$100 HP$300 HP$500 HP$750 HP$1,000 HPProductivity Choose5% HP10% HP11% HP12% Dell15% Dell25% DellHourly Salary Choose$15.00 HP$18.00 HP$20.00 HP$25.00 HP$35.00 HPHP WinsDefender vs. HpDefender vs. Hp Defender EUAC HP EUAC0 Total Total1 -$5,900.00-$58,830.002 -$6,520.70-$20,783.133 -$7,148.01 -$8,108.244 -$7,789.43 -$4,478.325 -$8,453.91 -$2,814.056 -$9,152.18 -$947.247 -$9,897.14 $192.488 -$10,704.27 $880.809 -$11,592.21 $1,265.0610 -$12,583.38 $1,427.7811 -$13,704.74 $1,415.2212 -$14,988.72 $1,251.5613 -$16,474.32 $946.2114 -$18,208.38 $497.7015 -$20,247.13 -$104.22HP WinsSensitivity AnalysisSensitivity AnalysisHP vs. DefenderHP vs. DefenderMaintenance Cost Choose$100 HP$300 HP$500 HP$750 HP$1,000 HPProductivity Choose5% HP10% HP15% HP20% HP25% HP30% HPHourly Salary Choose$15.00 HP$18.00 HP$20.00 HP$25.00 HP$35.00 HPHP WinsOverall AnalysisOverall AnalysisHP Computer Best Option•Better alternative (EUAC + Sensitivity)•High productivity offsets high
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