SPENDING ON PERSONAL COMPUTERS You are working with a group of managers to plan
ID: 3670337 • Letter: S
Question
SPENDING ON PERSONAL COMPUTERS You are working with a group of managers to plan resource needs over the next 6 years at your company. One set of resource!, personal computers. has caused a lot of concern among the managers. The company has 1.000 professional staff members. aad each one tea a personal computer. The cost of a personal computer is estimated to be SI 300 per professional staff member. The professional staff is expected to grow by 10 percent per year over the next 6 years. The managers don't think the company can afford to continue purchasing computer for each staff member. They assume that the cost of computers increases each year, just like everything else. However, you know that Moore's Law predicts that the cost of computers decreases by half every 18 months. You need to prove that the company can afford provide a personal computer to every professional staff member. Create a table like the one that follows and fill in the blanks Note that year 0 is the current year, and you know the cost for a computer as well as the number of professional staff who are employed. Use Moore's Law to predict the cost of computers, assuming that professional staff will require the same computer power in 6 years as they require now and that the price will drop accordingly. Write a short explanation (8 to 10 sentences) as to why m 6 years it will cost only about $166,000 for PCs even though the number of staff will have increased.Explanation / Answer
By moore's law, Price of PC decreases by half every 18 months.
So, creating table in steps of 18 months and calculating Total PC cost
Since, percentage is increase in statff is much lesser than percentage of decrease in PC cost, Total cost comes down to 166000 after 6 years
Year Staff PC cost Total Cost 0 1000 1500 1,500,000 1.5(18 months) 750 3 1331 375 499,125 4.5 187.5 6 1771 93.75 166,031Related Questions
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