Question
please, can someone help me with this exercise? Thanks in advance Objectives: Setting up a spreadsheet for problem analysis, Cell referencing Important components of the
please, can someone help me with this exercise? Thanks in advance Objectives: Setting up a spreadsheet for problem analysis, Cell referencing Important components of the IS model include hardware, software, networking, people, and data. The total cost of information systems in an organization is the sum of the cost of each component of this IS model. Mishawaka Sales Company (MSC) is a direct marketing company involved in sales and distribution of a range of products in the Mid-West. MSC wants to provide better operational support to its sales representatives (SR) by providing each of its 800 SRs a laptop computer. The lifespan of each laptop is assumed to be five years with zero residual value, and the cost of each laptop is $1800. Each laptop needs operational software worth $500 in the beginning. Second-year onwards, each laptop will need software upgrades costing $100 per laptop each year. Each SR needs to enroll in an initial training program costing $200 per SR. From the second year onwards; each SR will need to get annual training costing $50 per year. Based on historical data, MSC knows that 2% of laptops will need repair every year, and the cost of a laptop repair is $800 per incident. Determine the total cost of ownership (TCO) for this operational automation project at MSC over the lifespan of laptops. Guidelines: Do not use numbers in a formula. Always use cell referencing. To do this, the first thing that you would like to do is to enter all input numbers with their headings. Subsequently, calculate various cost components by using cell referencing and then add them up to determine the total cost.
c | ID E 1 Mishawaka Sales Company (TCO) 2 3 Number of laptops 4 Price of a laptop 5 Software cost 6 Software upgrade cost / year 7 Initial training cost 8 Folllow-up training cost / year 9 Repair incidents/ year 10 Repair cost/ laptop 11 Lifespan (years) 800 $1,800 $500 $100 $200 $50 2% $800 HW Cost SW Cost Training cost Repair cost TCO $1,440,000 $720,000 $320,000.00 $64,000 $2,544,000Step by Step Solution
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