Purchasing manager Mr. David is considering purchasing cleaning service for the organization, Avalanche Inc. the life cycle of the contract is two years and the firm has a cost of capital of 15%. They need 20 cleaners for the whole firm. Additional cost information are as follows:

COST CRITERIA	MEASURES
Purchase price:
Service Bid (cleaner and equipment supply)	@50$ /cleaner
Acquisition cost:
Purchasing personnel	1 FTE @ 60K for a month and 1 FTE @ 80K each year for two months
Administration	Purchase Order (PO) @4$, yearly 18 invoices @1$
Usage cost: Wage	@1900 $/cleaner/month
Setup in offices	@20 $/cleaner
Cleaning supplies	@100 $/month
Lunch	@150 $/cleaner/month
Supervision	1 @ 36K $
Festival Tips (Two per year)	@20 $/cleaner
Downtime	Yearly 100 hours per person @ 18 $ / hour
End of life cost
Tips	@ 15 $/cleaner

Calculate the TCO for the considered service.