Question: The Total Landed Costs (TLC) for a plastic wrap packaging machine from Germany to Monterrey, Mexico was calculated to be $723,566 USD. The company

The Total Landed Costs (TLC) for a plastic wrap packaging machine from

The Total Landed Costs (TLC) for a plastic wrap packaging machine from Germany to Monterrey, Mexico was calculated to be $723,566 USD. The company intends to use it for only 3 years and then resell it to another firm in Mexico. Its Total Cost of Ownership (TCO) is estimated to be $695,000. How is it possible to have a TCO less than TLC? Residual value of the plastic wrapper (credit at end of life) far exceeds acquisition, usage, and other in-service costs It is not possible to have TCO less than TLC

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