The mayor has asked the city's controller to make a recommendation as to which of two computing systems should be purchased. The two systems are equivalent in their ability to meet the city's needs and in their ease of use. The terminal system consists of a blade enclosure and blade servers running a Unix-based terminal network, with remote terminals and printers located throughout the city offices. The personal computer system consists of a rack-mount network server, a few remote terminals, and a dozen personal computers, which will be network to the server. Each system would last five years. The controller has decided to use a 12 percent hurdle rate for the analysis.