, , PBRSKE PHUC Chapter 12 Activity - Total Cost of Ownershipe The topics covered in Chapters 11 & 12 indirectly touch on the idea of 'Total Cost of Ownership, or TCO. The point of considering TCO is to recognize that there are a wide variety of ongoing costs beyond the initial price tag that keep assets running over the years. These include, but are not limited to, items such as maintenance, repairs, and updates, 1. First, imagine you are a CFO tasked with estimating the TCO for a new Information System that your IT department is very excited about. Beyond the initial purchase price of the system, what should be considered in a full TCO analysis? ttttt I ttt 2. Discuss some potential problems of ignoring the TCO and only focusing on the initial purchase price when estimating future cash flows and making capital budgeting decisions