Question
Hello, I would like to ask you for help with cost-benefit and recurring cost analysis. There are two alternative Desktop computers, and they both have
Hello, I would like to ask you for help with cost-benefit and recurring cost analysis.
There are two alternative Desktop computers, and they both have the same processor.
a. The first is brand A which costs $1,029. This computer has a standard 1-year warranty and comes with Windows 10. It has 8Gb ram and 1Tb HDD.
b. The second computer is B brand, includes customized hardware and software options, and is priced at $1,089. The PC has a 512 Gb SDD and an extra 1Tb HDD. It comes preloaded with Windows 11 and has a 3-year full warranty. In addition, antivirus software licensed for three years and a wired mouse and keyboard set are included in the package.
The life cycle of computers was determined as three years.
The current system is ancient and causing problems. (To fix, it takes 6 hours of IT to support service per week, which is $30 per hour.
My choice was the B brand, but I need to accomplish a cost-benefit analysis and recurring cost calculations between these two. However, the option I have already chosen comes with a guarantee to cover its life cycle, and the software is licensed. ( three years)
How do I calculate the recurring cost in this case? Should I say no recurring costs? I am not entirely sure, and therefore I would like your help on what I should do.
Frankly, I am pretty inexperienced in this matter. I would appreciate it if you could explain to me how I can understand how to complete this and, if possible, how I can calculate it according to the variables I have given above.
Thank you. Keywords; Cost-benefit analysis, Recurring cost, Tangible benefits Intangible benefits.
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