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12:15 4 Blackboard You, as a supply chain manager, are considering the purchase of 500 desktop PCs for your company. The life cycle for the PCs is four years, and your company's cost of capital is 8%. You are required to calculate the TCO for this scenario and the following cost elements are available to you. \begin{tabular}{ll} \begin{tabular}{l} Cost elements \\ measures \end{tabular} & \multicolumn{1}{c}{ Cost } \\ \begin{tabular}{l} Purchase Price \\ - Hardware Equipment \end{tabular} & Supplier \\ quote: $800 per PC & \\ - Software License & $250 per PC \\ Acquisition Cost: & \\ - Sourcing & 2 FTE @ \\ & $65,000 and $120,000 for 3 months \\ - Administration & 1 Purchase \\ & order @ $110,12 invoices @ $50 \\ each & \end{tabular} The purchase order is placed now and invoices are placed every month. Usage Costs: - Installation $500 per PC - Equipment support $100 per month per PC - Network support $120 per month per PC - Warranty $160 per PC (paid athotime of pervise) 12:14 4 Blackboard 958 - Opportunity cost - Lost Productivity Downtime 20 hours per PC@ $35 per hour End of Life: - Salvage Value $50 per PC You are required to understand this scenario, compute the above cost elements and place them in the following table: Cost Elements Present Year 1 Year 2 Year 3 Year 4 Name them here Total Present Value Total Present Value Use your classroom notes. You, as a supply chain manager, are considering the purchase of 500 desktop PCs for your company. The life cycle for the PCs is four years, and your company's cost of capital is 8%. You are required to calculate the TCO for this scenario and the following cost elements are available to you. Cost elements Cost measures Purchase Price - Hardware Equipment Supplier quote: $800 per PC - Software License $250 per PC Acquisition Cost: - Sourcing 2FTE@ $65,000 and $120,000 for 3 months - Administration 1 Purchase order@\$110, 12 invoices@\$50 each The purchase order is placed now and invoices are placed every month. Usage Costs: - Installation $500 per PC - Equipment support $100 per month per PC - Network support $120 per month per PC - Warranty $160 per PC - Opportunity cost - Lost Productivity Downtime 20 hours per PC@\$35 per hour End of Life: - Salvage Value $50 per PC You are required to understand this scenario, compute the above cost elements and place them in the following table: Cost Elements Year 2 Year 2 Name them here Present Year 1 Year 3 Year 4 Total Present Value Total Present Value