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 capital budgeting 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

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

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?

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