Assume you have been asked to create an excel spreadsheet to help make a buy versus lease decision about the servers for your organization. Assume that you are considering the servers for a 5 year period, but you do not know exactly how many servers you will need. Initally, you know you will need five servers, but you might need as many as 50, depending on the success of your organizations e-commerce activity. For the buy alternative calcualtions, set up your excel spreadsheet so that you can enter the base price of the server hardware, the price of all software, and a maintenance expense that is some percentage of the hardware price. Assume that the percent you enter covers both hardware and software maintenance. Also assume that each server has a 3 year life, after which has no value. Assume straight line depreciation for computers used less than 3 years, and that at the end of the 5 years you can sell the computers you have used for less than 3 years for their depriciated value. Also assume that your organization pays 2 percent interest on capital expenses. Assume the servers cost $2500 each, and the needed software costs $1250. Assume that the maintenance expense varies from 2 to 7 percent. For the lease-alternative calculations, assume that the leasing vendor will lease the same computer hardware you can purchase. The lease includes all the software you need as well as all maintenance. Set up your excel spreadsheet so that you can enter various lease costs, which vary according to the number of years of the lease (1,2, or 3). Assume that the cost of a 3 year lease is $285 per machine per month, a 2 year lease is $335 per machine per month, and a 1 year lease is $415 per machine per month. Also, the lessor offers a 5 percent discount if you lease from 20 to 30 computers and a 10 percent discount if you lease from 31 to 50 computers. Create a microsoft excel spreadsheet
Assume you have been asked to create an excel spreadsheet to help make a buy versus lease decision about the servers for your organization. Assume that you are considering the servers for a 5 year period, but you do not know exactly how many servers you will need. Initally, you know you will need five servers, but you might need as many as 50, depending on the success of your organizations e-commerce activity.
For the buy alternative calcualtions, set up your excel spreadsheet so that you can enter the base price of the server hardware, the price of all software, and a maintenance expense that is some percentage of the hardware price. Assume that the percent you enter covers both hardware and software maintenance. Also assume that each server has a 3 year life, after which has no value. Assume straight line depreciation for computers used less than 3 years, and that at the end of the 5 years you can sell the computers you have used for less than 3 years for their depriciated value. Also assume that your organization pays 2 percent interest on capital expenses. Assume the servers cost $2500 each, and the needed software costs $1250. Assume that the maintenance expense varies from 2 to 7 percent.
For the lease-alternative calculations, assume that the leasing vendor will lease the same computer hardware you can purchase. The lease includes all the software you need as well as all maintenance. Set up your excel spreadsheet so that you can enter various lease costs, which vary according to the number of years of the lease (1,2, or 3). Assume that the cost of a 3 year lease is $285 per machine per month, a 2 year lease is $335 per machine per month, and a 1 year lease is $415 per machine per month. Also, the lessor offers a 5 percent discount if you lease from 20 to 30 computers and a 10 percent discount if you lease from 31 to 50 computers.
Create a microsoft excel spreadsheet.
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