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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Meathead who wrote (44455)	5/22/1998 3:28:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

RE: Jim, you are ignoring worker productivity in your asessment. It's far more complex of an analysis procedure than the idiot simple example I gave. It was for illustrative purposes only. Yes, you are correct, Would a worker be more productive over a 5 year period with an upgrade @ the end of year 3, or with more than he needs at the begining and grows into without an upgrade. We also left out the cost of upfront capital, and the oppertunity costs of the difference. What is the cost of the capital. With the three year replacement, leasing may be a lower cost alternative. You forgot to count 1 year of depreciation in your cheep model. I know everything is more complex that what we type here. KISS, that is something I try to stick to. Usualy you can get an acurate simple model for ilustrative purposes that close to reality. KISS, Keep It Simple Stupid. The diference is only $280 /machine/year. When you can't difinitively state that the machine will be non usable in 3 years, and @ 4 years, both break even, it is a compelling argument. Oh yea, we could keep the monitor the same in the cheep model, that will add $100 in the first year and subtract $300 in the third. That could be the all we need. Jim