Question

Your boss at company asks you to buy 1000 laptops for 1000 employees. You have identified two options OPTION A, is a 1000 EURO laptop that is very fast and nice. OPTION B, is a 600 EURO laptop that is slower. Assume the following: Laptop lasts for 2 years. With the laptop of option B employees waste 5% of their time waiting because it is slow. An employee without laptop can not work. Each employee cost to the company is 100k EURO per year and it generates 200k in income to the company. What would you do? Do a cost benefit analysis

used excel or spreadsheet to solve the case

Answer 1

The answer is to go for option A as the total net benefit provided in option A is more than that of option B. The calculation has been done in an excel file and a snippet has been attached for your reference.

Option A Option B No. of employees/laptops Cost per laptop Waiting time Working time 1000 1000 0% 100.00% 1000 600 5% 95.00% Option A Year 1 Benefit per employee Cost per employee Difference 200000 101000 200000 100000 Year 2 99000 100000 199000 Total difference Option B Year 1 Year 2 Total difference Benefit per employee Cost per employee Difference 190000 100600 8 9400| 190000 100000 90000 179400 Net benefit in option A is more than option B. Therefore, the company should go for option A