In 2015 the City of Saskatoon needed to purchase a Landfill Bulldozer, together with on-site maintenance service for it. The "Total cost of ownership, present value adjusted" factor was worth 25% of the selection criteria. The service maintenance agreement was based on each hour the bulldozer was expected to operate. This totalled 3,000 hours a year, for 5 years. Also, City required a guaranteed repurchase price (GRP) which was like the salvage value after 5 years. Suppose a proponent offered the following: Purchase price = $600,000; Service maintenance per machine hour = $10, based on 3,000 hours of operation per year for 5 years; and GRP of $100,000 at the end of 5th year. Calculate the discounted total cost of ownership of this offer in the Landfill bulldozer worksheet of MT 491.xlsx. Use annual discount rate of 3.5%