Question: Cost Comparison You are thinking about purchasing a new computer since the machine you are using now is 4 years old, slow, not always reliavle,

Cost Comparison

You are thinking about purchasing a new computer since the machine you are using now is 4 years old, slow, not always reliavle, and does not support the latest operating system. Your needs for the new computer are simple: antivirus, software, email, web browsing, word processing, spreadsheet, database, iTunes and some lightweight graphical tools. You have to factor in a few added costs beyond just the initial purchase price for the computer itself, such as added hardware (new printer, scanner), software, training, software upgrades and maintenance.

It is useful to think about costs over time-both direct as well as indirect costs. Part of the decision will rest with present value of the purchase.
A dollar today is worth more than a dollar one year from now.
Relevant discount rate is your marginal cost of capital corresponding to a level of risk equal with the purchase

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