Robert D. Johnston

Evaluating Computer System Financing Alternatives for Educational Organizations

AbstractThe acquisition of computer systems has become a widespread occurrence among educational organizations in recent years. Given the increasing pressure on such organizations to assure the optimal utilization of their limited financial resources, this paper presents an evaluation methodology for determining a time value of funds approach to analyzing financing alternatives. The paper begins with a review of various funding alternatives for the acquisition of computer systems. The evaluation methodology with the necessary supporting assumptions is then discussed. Subsequently, an application of the proposed methodology to five separate funding options for the same hypothetical medium-sized computer system is presented.