Case Study: TCO of a $500 Computer Your friend Ron has asked for your help in buying a home computer. He intends to use the computer for word processing, email, entertainment, and Internet access, and he wants your advice about how much he should budget for a home personal computer. He is skeptical of ads for computers that cost less than $500. What is a realistic amount Ron should expect to spend, both at the time of initial purchase and over the next four years of ownership? Use catalogs, articles in online or print computer magazines, and vendor websites to obtain current price information.
Design a spreadsheet to draw up a sample budget, showing your recommended initial expenditure and the annual cost for the next four years. Break down the costs by the categories described in this chapter. Show the total cost of ownership over the four years that Ron plans to own the computer. Please compile your data and write a REPORT composed of your own full sentences (not copy/paste from web pages or bulleted lists) explaining your recommendation(s) to Ron.