Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
1 - Determine the TCO of this contract for three years. (Show all excel work and formulas) 2 - How would you approach the supplier
1 - Determine the TCO of this contract for three years. (Show all excel work and formulas)
2 - How would you approach the supplier about reducing the TCO for computers over the life of this contract (describe your negotiation strategy)?
Exhibit 11.14 TCO Calculation for One Purchase Option COST ELEMENTS COST MEASURES Purchase Price (Step 1): Equipment (Step 2) Supplier quote: $1,200 per PC (Steps 3 and 4) Software License A Supplier quote: $300 per PC Software License B Supplier quote: $100 per PC Software License C Supplier quote: $50 per PC Acquisition Cost: Sourcing 2 FTE @ $85K and $170K for 2 months Administration 1 PO @ $150, 12 invoices @ $40 each Usage Costs: Installation Equipment Support Network Support Warranty Opportunity CostLost Productivity End of Life: Salvage Value $700 per PC (PC move, install, network) $120 per month per PC-supplier quote $100 per monthsupplier quote $120 per PC for a 3-year warranty Downtime 15 hours per PC per year @ $30 per hour $36 per PC Exhibit 11.14 TCO Calculation for One Purchase Option COST ELEMENTS COST MEASURES Purchase Price (Step 1): Equipment (Step 2) Supplier quote: $1,200 per PC (Steps 3 and 4) Software License A Supplier quote: $300 per PC Software License B Supplier quote: $100 per PC Software License C Supplier quote: $50 per PC Acquisition Cost: Sourcing 2 FTE @ $85K and $170K for 2 months Administration 1 PO @ $150, 12 invoices @ $40 each Usage Costs: Installation Equipment Support Network Support Warranty Opportunity CostLost Productivity End of Life: Salvage Value $700 per PC (PC move, install, network) $120 per month per PC-supplier quote $100 per monthsupplier quote $120 per PC for a 3-year warranty Downtime 15 hours per PC per year @ $30 per hour $36 per PCStep by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started