Team 7Kevin Colangelo

Jeff AckermanJake 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?

CyberpowerPC Gamer Xtreme 2000

Price: $2,429.99 Price with two

year warranty: $2,569.98

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%

Home built preferred when: Labor cost is less than $17 / Month Payment interest rate is less than 21%

Store bought preferred when: At every MARR %

Resources www.newegg.com www.frys.com