Divide your team into two groups. In one group, find a local business, such as a copy

Question:

Divide your team into two groups. In one group, find a local business, such as a copy shop that rents time on desktop computers for an hourly rate. Determine the hourly rate. In the other group, determine the price of a mid-range desktop computer at www.dell.com. Combine this information from the two groups and perform a analysis. Assume that one student will use the computer for 40 hours per semester for the next three years. Also assume that the minimum rate of return is 10%. Use the interest tables in Appendix A in performing your analysis.
Does your analysis support the student purchasing the computer?
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...