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.
The two manufacturers have provided the following additional information:
|Cuts All Model 10||Super-Hot Model Z2|
|Warranty||5 years||3 years|
|Annual service contract||$759||$632|
|Consumables cost per year||$522||$630|
|Annual electric cost||$444||$520|
|Annual water cost||$230||$180|
|Residual value after 10 years||$39,000||$21,000|
Submit a MS Excel spreadsheet that calculates the total cost of ownership of each machine. Based on the TCO calculation, specify which model you recommend purchasing.
Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment
TOTAL COST OWNERSHIP
COURSE TITLE AND NUMBER
Cuts All Model 10 Super-Hot Model Z2
Base price $ 79,000.00 $ 68,000.00
Discount 2% $ 1,580.00 $ 1,360.00
Purchase price $ 77,420.00 $ 66,640.00
Delivery $ 3,000.00 $ 2,200.00
Initial cost $ 80,420.00 $ 68,840.00
Annual service contract $ 3,795.00 $ 4,424.00
consumables cost $ 5,220.00 $ 6,300.00
Annual electric cost $ 4,440.00 $ 5,200.00
Annual Water cost $ 2,300.00 $ 1,800.00
Operator Training $ 300.00 $ –
Total expenses $ 96,475.00 $ 86,564.00
Residual value $ 39,000.00 $ 21,000.00
TOTAL COST OWNERSHIP $ 57,475.00 $ 65,564.00
Place your order now on this similar assignment and get quality affordable work written from scratch by our Expert Grade A+ Top Writers.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more