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prepare a spreadsheet to compare costs of a computer and software and work the following. please show all work for calculating the present value costs
prepare a spreadsheet to compare costs of a computer and software and work the following. please show all work for calculating the present value costs to help me understand
Project 6: Cost Comparison You are thinking about purchasing a new computer since the machine you are using now is 4 years old, slow, not always reliable, and does not support the latest operating system. Your needs for the new computer are simple: antivirus software, email, web browsing, word processing, spreadsheet, database, iTunes, and some lightweight graphical tools. Your concern is what the total cost of ownership will be for the next 3 years. You have to factor in a few added costs beyond just the initial purchase price for the computer itself, such as added hardware (this could include a new printer, docking station, or scanner), software (purchase of a new operating system), training (you're thinking about pursuing web training to get an internship next term), subsequent software upgrades, and maintenance. - It is useful to think about costs over time-both direct as well as indirect costs. Part of the reason this distinction is important is that a decision should rest not on the nominal sum of the purchase but, rather, on the present value of the purchase. = A dollar today is worth more than a dollar one year from now. = The relevant discount rate (interest rate) is your marginal cost of capital corresponding to a level of risk equal with the purchase. - Use the AYK6_Data.xIsx data file as a template. Data file: AYK6_Data.xisx Step by Step Solution
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