Using the concepts in Chapter 13, compare the Total Costs of Ownership for "buying" a BS in Business (a mainly live school) and a BS in Business from (a mainly online university). Specifically, answer the following questions:

1) Which three topics from Chapter 13 are most applicable to this TOC analysis? Explain.

2) Provide a cost/revenue analysis over the product life for each of the programs. Clearly explain your assumptions that you used in the analyses in parts a) through c).

a) Using tuition data from the websites of both universities and from the federal government show your expected costs for both an out of state student who is living on campus on her/his own and for an in-state student who is living with family close enough to campus to commute.

b) Use the best available information from the universitys website, other websites, or your estimates to determine lifetime earnings based upon receiving degrees either university. Cleary explain the factors you used in determining lifetime earnings differences for each university.

c) Compare the costs vs. revenues from a) and b) and explain under which conditions getting a degree at either university is best. Note that you should consider other factors, including the probability of completing a degree at either institution.

"Chapter 13

TOTAL COST OF OWNERSHIP

LEARNING OBJECTIVES

Dr. Timothy L Smunt - BA 477

1. Understand the concept of total cost of ownership (TCO).

2. Learn how to value the components of the total cost for both goods and services.

3. Understand the concepts of acquisition costs, ownership costs, and post-ownership costs"