In one group, find a local business, such as a copy shop, that rents time on desktop comput-ers for an hourly rate. Determine the hourly rate. In the other group, determine the price of a mid-range desktop computer at

http://www.dell.com

. Combine this information from thetwo groups and perform a capital budgeting analysis. Assume that one student will use thecomputer for 35 hours per semester for the next three years. Also assume that the minimumrate of return is 10%. Use the interest tables in Appendix A in performing your analysis. (

 Hint:

Use the appropriate present value factor for 5% compounded for six semiannual periods.)Does your analysis support the student purchasing the computer?

Answer rating: 100% (QA)

Let x denote hourly rate for renting a desktop Using information from dellcom a mid range de... View the full answer