Page 556 - Using MIS

for computers used less than 3 years, and that at the end of the 5 years you can sell
the computers you have used for less than 3 years for their depreciated value. Also
assume that your organization pays 2 percent interest on capital expenses. Assume
the servers cost $2,500 each, and the needed software costs $1250. Assume that the
maintenance expense varies from 2 to 7 percent.
b. For the lease-alternative calculations, assume that the leasing vendor will lease the
same computer hardware you can purchase. The lease includes all the software you
need as well as all maintenance. Set up your spreadsheet so that you can enter vari-
ous lease costs, which vary according to the number of years of the lease (1, 2, or 3).
Assume the cost of a 3-year lease is $285 per machine per month, a 2-year lease is
$335 per machine per month, and a 1-year lease is $415 per machine per month.
Also, the lessor offers a 5 percent discount if you lease from 20 to 30 computers and
a 10 percent discount if you lease from 31 to 50 computers.
c. Using your spreadsheet, compare the costs of buy versus lease under the following
situations. (Assume you either buy or lease. You cannot lease some and buy some.)
Make assumptions as necessary and state those assumptions.
(1) Your organization requires 20 servers for 5 years.
(2) Your organization requires 20 servers for the first 2 years and 40 servers for the
next 3 years.
(3) Your organization requires 20 servers for the first 2 years, 40 servers for the
next 2 years, and 50 servers for the last year.
(4) Your organization requires 10 servers the first year, 20 servers the second year,
30 servers the third year, 40 servers the fourth year, and 50 servers the last year.
(5) For the previous case, does the cheaper alternative change if the cost of the
servers is $4,000? If it is $8,000?

Chapter 5
AE5-1. In some cases, users want to use Access and Excel together. They process
relational data with Access, import some of the data into Excel, and use
Excel’s tools for creating professional-looking charts and graphs. You will do exactly
that in this exercise.
Download the Access file Ch05Ex01_U8e.accdb. Open the database and select
DATABASE TOOLS/Relationships. As you can see, there are three tables: Product,
VendorProductInventory, and Vendor. Open each table individually to familiarize your-
self with the data.
For this problem, we will define InventoryCost as the product of Industry-
StandardCost and QuantityOnHand. The query InventoryCost computes these values
for every item in inventory for every vendor. Open that query and view the data to be
certain you understand this computation. Open the other queries as well so that you
understand the data they produce.
a. Sum this data by vendor and display it in a pie chart like that shown in Figure AE-3
(your totals will be different from those shown). Proceed as follows:
(1) Open Excel and create a new spreadsheet.
(2) Click DATA on the ribbon and select From Access in the Get External Data rib-
bon category.
(3) Navigate to the location in which you have stored the Access file Ch05Ex01_
U8e.accdb.
(4) Select the query that contains the data you need for this pie chart.
(5) Import the data into a worksheet.

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