Question: 1 - Determine the TCO of this contract for three years. (Show all excel work and formulas) 2 - How would you approach the supplier

1 - Determine the TCO of this contract for three years. (Show all excel work and formulas)

2 - How would you approach the supplier about reducing the TCO for computers over the life of this contract (describe your negotiation strategy)?

Exhibit 11.14 TCO Calculation for One Purchase Option COST ELEMENTS COST MEASURES Purchase Price (Step 1): • Equipment (Step

Exhibit 11.14 COST ELEMENTS Purchase Price (Step 1): Equipment (Step 2) Software License A Software License B Software License C Acquisition Cost: TCO Calculation for One Purchase Option COST MEASURES Sourcing Administration Usage Costs: Installation Equipment Support Network Support Warranty Opportunity Cost-Lost Productivity End of Life: Salvage Value Supplier quote: $1,200 per PC (Steps 3 and 4) Supplier quote: $300 per PC Supplier quote: $100 per PC Supplier quote: $50 per PC 2 FTE @ $85K and $170K for 2 months 1 PO @ $150, 12 invoices @ $40 each $700 per PC (PC move, install, network) $120 per month per PC-supplier quote $100 per month supplier quote $120 per PC for a 3-year warranty Downtime 15 hours per PC per year @ $30 per hour $36 per PC

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Deter mine the T CO of this contract for three years Show all excel work and formulas ANS WER TC O for Three Years Purchase Price Equipment Step 2 1 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

How would you respond to Kervorkian's question: "If we can aid people coming into the world, why can't we aid them in exiting the world?

How would you approach the issue of languages used in India? Discuss the pros and cons of the choices you consider and then make a decision on one and support it.

As the sales manager for EDI how would you approach future reverse auctions?

Suppose your firm receives a $5 million order on the last day of the year. You fill the order with $2 million worth of inventory. The customer picks up the entire order the same day and pays $1...

In 2014, the new CEO of Watsontown Electric Supply became concerned about the companys apparently deteriorating financial position. Wishing to make certain that the grim monthly reports he was...

You have been given the task of evaluating the hedging policy used by a Singa pore company that manufactures mobile telephones under contract for a major company in Europe. The management has a...

Saucer Food Company has decided to buy a new computer system with an expected life of 3 years. The cost is $150000. The company can borrow $150,000 for three years at 10 percent annual interest or...

Consider a wave packet with a Gaussian amplitude distribution A (k) = B exp [ σ (k k0)2] where 2/√σ is equal to the 1/e width* of the packet. Using this function for A (k), show...

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The companys present...

In December 2008, Zander Companys manager estimated next years total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $30 per hour. The manager...

please calculate cash payback period thank you Carper Company is considering a capital investment of $361,200 in additional productive facilities. The new machinery is expected to have useful life of...

The photograph below shows the interference of two water waves produced by two coherent sources operating at the same frequency and in phase. The waves travel outward at a constant speed from the two...

The majority of information needed to answer these can be found through our website. However, in cases where it isn't, please use your imagination and creativity to come up with a personally tailored...

Mary Kate is an intern with a minor league baseball team. She says, I report to two managers: the director of marketing and the director of community relations. From time to time, the director of...

How can healthcare practitioners actively incorporate the principle of treating individuals like human beings into their daily interactions with patients from diverse backgrounds? Share examples of...

Megan is a single taxpayer. Her salary is $45,000. Megan realized a short-term capital loss of $6,500. Her itemized deductions total $1,500. (The tax year is 2023.) View the standard deduction...

Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance Sheets: 2020 2019 Cash and equivalents $100 $85 Accounts receivable 275 Inventories 375 250 Total...

Gopher, Inc. developing its upcoming budgeted Costs of Quality (COQ) with the following information: Expense Item Budget Raw Materials Inspection $ 15,000 EPA Fine 200,000 Design Engineering 15,000...

Intangibles have either a limited useful life or an indefinite useful life. How should these two different types of intangibles be amortized?

What evidence is necessary to demonstrate the ability to consummate the refinancing of short-term debt?

Fogelberg Corporation is a regional company which is an SEC registrant. The corporations securities are thinly traded on NASDAQ (National Association of Securities Dealers Quotes). Fogelberg has...

In Exercise 11, find (a) a point estimate for /x based on the prior distribution alone (b) a point estimate for n based on the sample information alone (c) a point estimate for fx based on the...

Give a few examples of situations in which your prior distribution would effectively be diffuse, and a few examples in which it would definitely not be diffuse relative to a given sample.

In assessing a distribution for the mean height of a certain population of college students, a person decides that his distribution is normal, the median is 70 inches, the .20 fractile is 67 inches,...