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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST

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To: Meathead who wrote (44339)5/22/1998 2:34:00 PM
From: Chuzzlewit  Read Replies (3) of 176387
 
Meathead, that was a great post. The the annualized cost differential is the key criterion for the choice of machine. Let me tweak your numbers a bit to take into account the cost of capital (I am a financial analyst after all, so I can't resist!).

Clearly, your analysis is correct because of the one-time charge associated with the installation of the machines. Since the administrative costs are the same they are irrelevant to the analysis. Ignoring the administrative costs and calculating the annuitized first costs of the machine supports your conclusion. This cheaper machine costs $220.31 more per workstation per year when the cost of money is included in the calculation.

Thanks again for a great post!

TTFN,
CTC
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