Sign In
Not register? Register Now!
Essay Available:
1 page/≈275 words
1 Source
Mathematics & Economics
Math Problem
English (U.S.)
MS Word
Total cost:
$ 4.32

Research and Describe The Total Cost of Ownership (TOC) (Math Problem Sample)


The production manager has asked you to purchase a replacement numerically controlled (NC) plasma-cutting machine for the metal fabrication shop. She has provided you with the manufacturer’s number and model number for two models and indicates that the performance of either machine is perfectly acceptable. The existing tooling and fixtures will also work with either machine. Footprint and utility requirements are nearly the same as the old machine and will not require changes to the facility. The equipment will be depreciated over a ten-year period, which is also the expected service life. An annual service contract is required after the expiration of the warranty and throughout the remaining service life. You will take advantage of a 2% discount offered by each supplier for paying cash. You decide to complete a total cost of ownership (TCO) analysis to help make the purchasing decision.


Total Cost of Ownership (TOC)
Besides the initial purchase price, there are other costs over the lifecycle of the asset or machinery, and when the asset can be resold there is a residual value at the end of the life (Monczka, Handfield, Giunipero & Patterson, 2016). The Total Cost of ownership (TCO) is the initial transaction cost, acquisition costs, and usage cost and the residual value and if resold salvage cost. I would recommend the Cuts All Model 10 model, since the total cost of ownership is $45,255 and lower than that of Super-Hot Model Z2 at $51,162.

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Math Problem Assignment Paper: Report of Gini Index
    Description: The low household income in Arizona stipulates that more household members share less income compared to those in Colorado. Thus, an indication that there are more poor persons in Arizona than they are in Colorado....
    3 pages/≈825 words | 6 Sources | APA | Mathematics & Economics | Math Problem |
  • Calculation: What Is The Solute? What Is The Solvent?
    Description: What is the solute? What is the solvent? What is the volume of the solution? Express 2M as a fraction...
    1 page/≈275 words | No Sources | APA | Mathematics & Economics | Math Problem |
  • Inflation and Interest Rates, Real Risk-Free Rate
    Description: For this problem, examine Treasury securities. Considering the following numbers, what would the yield on 3-year Treasury securities be?...
    3 pages/≈825 words | 2 Sources | APA | Mathematics & Economics | Math Problem |
Need a Plagiarism Free Essay?
Submit your instructions!