FORMAT: MS Excel file with all the

TCO Calculation for One Purchase Option

Cost Elements Cost Measu

Qty. to be Purchased - 1000 Units

Purchase Price
Equipment $ 1,200 per p
Software Licence A $ 300 per p
Software Licence B $ 100 per p
Software Licence C $ 50 per pi

Acquisition Cost
Sourcing $42,500
Administration 1PO @ $150, 12 invoic

Usage Cost
Installation $700 per PC (installatio
Equipment Support $120 per month
Network Support $100 per PC pe
Warranty $120 per PC for a 3-y
Downtime 15 hours pe
Opportunity Cost- Lost Productivity $30 per ho

End of Life Cost

Salvage Value $36 per P
Note- * 12 Invoices are raised each year for 3 years
: MS Excel file with all the relevant details

One Purchase Option

Cost Measures

Procurment cost Year 1

ase Price Purchase cost 1200000
$ 1,200 per piece Licence cost 450000 Equipment support
$ 300 per piece Sourcing Cost 42500 Network cost
$ 100 per piece Purchase order 150 Invoice cost
$ 50 per piece Installation 700000 Opportunity cost
Warranty 120000
tion Cost Total 2512650 Total
$42,500 Cumulative 2512650 Cumulative
1PO @ $150, 12 invoices* @ $40 each

e Cost
$700 per PC (installation, Networking
$120 per month per PC
$100 per PC per month
$120 per PC for a 3-year warranty
Downtime 15 hours per PC per year @
$30 per hour

Life Cost
$36 per PC
aised each year for 3 years
 Year 2 Year 3

1440000 Equipment support 1440000 Equipment support 1440000

1200000 Network cost 1200000 Network cost 1200000
480 Invoice cost 480 Invoice cost 480
450000 Opportunity cost 450000 Opportunity cost 450000
Salvage value -36000
3090480 Total 3090480 Total 3054480
5603130 Cumulative 8693610 Cumulative 11748090