Cost Elements Cost Measures for 1,000 PCS . $1,200/PC - supplier quote $450/PC - supplier quotes (3) Purchase price: Hardware Software licenses A, B, and C Acquisition costs: Sourcing Administration 2 FTE employees @ $85K and $170K for 2 months 1 P.O. @ $150, 12 invoices @ $40 each Usage costs: Installation Equipment support Network support Warranty Opportunity cost-lost productivity End-of-life costs Salvage value $700/PC $120/month/PC - supplier quote $100/month - supplier quote $120/PC for 3-year warranty Downtime: 15 hours/PC/year @ $30/hour $36/PC Present Year 1 Year 2 Year 3 $ 1,200,000 $ $ $ 42,500 150 $ 480 $ 480 $ 480 Cost Elements Purchase Price: Hardware Software licenses A, B, and C Acquisition Costs: Sourcing Administration Usage Costs: Opportunity cost - productivity Installation Equipment support Network support Warranty End-of-Life Costs: Salvage value Total Present Values @ 12% $ 450,000 $ 450,000 $ 450,000 $ 700,000 $ (36,000) $ 2,512,650 $ 2,512,650 $ 3,090,480 $ 2,759,799 $ $ $ $ $