Total Cost of Ownership

Total Cost of Ownership (TCO) Using MS Excel
The production manager has asked you to purchase a replacement numerically controlled (NC) plasma-cutting machine for the metal fabrication shop. She has provided you with the manufacturer’s number and model number for two models and indicates that the performance of either machine is perfectly acceptable. The existing tooling and fixtures will also work with either machine. Footprint and utility requirements are nearly the same as the old machine and will not require changes to the facility. The equipment will be depreciated over a ten-year period, which is also the expected service life. An annual service contract is required after the expiration of the warranty and throughout the remaining service life. You will take advantage of a 2% discount offered by each supplier for paying cash. You decide to complete a total cost of ownership (TCO) analysis to help make the purchasing decision.
The two manufacturers have provided the following additional information:
Cuts All Model 10 Super-Hot Model Z2
Base price $79,000 $68,000
Freight/Delivery $3,000 $2,200
Warranty 5 years 3 years
Annual service contract $759 $632
Consumables cost per year $522 $630
Annual electric cost $444 $520
Annual water cost $230 $180
Operator training $300 Included
Residual value after 10 years $39,000 $21,000

Submit a MS Excel spreadsheet that calculates the total cost of ownership of each machine. Based on the TCO calculation, specify which model you recommend purchasing. For more information on Total Cost of Ownership check out: https://www.investopedia.com/terms/t/totalcostofownership.asp

Don't use plagiarized sources. Get Your Custom Essay on
Total Cost of Ownership
From as low as $9/Page
Order Essay

Order Now Image

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

Thehomeworkwritings.com’s team of writers write all papers from scratch. We deliver 100% original, unique papers. That’s what makes us the best custom homework writing service

Free Revisions

We provide unlimited free revisions to all customers and on all papers. Try The Homework Writings today for the best custom homework writing service and experience in the industry.

Title-page

Thehomeworkwritings.com gives clients title pages free of charge. Your only job is to fill out our order form. We will handle the rest.

Bibliography

As the leading essay writing service, we never submit any paper without a reference/bibliography page. We do this free of charge too.

Originality & Security

At Thehomeworkwritings.com, we take great pride in delivering only high-quality 100% original papers to all our clients. We also never share any of our clients’ information with third parties. Your data is safe with us.

24/7 Customer Support

No other custom homework writing service has a friendly, always available customer support team to respond to clients like us.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Why outsource our services

We have the best customer support team for your essay writing needs.

Pricing

Flexible Pricing

You won’t find any other custom homework writing service with pricing as flexible and affordable as ours.

Communication

Admission help & Client-Writer Contact

We provide a direct line of communication with our writers for the best writing experience.

Deadlines

Paper Submission

As the leading custom homework writing service, we take deadlines very seriously. You will have your paper submitted on time without any delays.

Reviews

Customer Feedback

We truly value your feedback, good or bad, and always use your feedback to help us provide you with an even better custom homework writing service