EBK SYSTEMS ANALYSIS AND DESIGN
11th Edition
ISBN: 8220102795068
Author: ROSENBLATT
Publisher: CENGAGE L
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Chapter TPC, Problem 1RQ
Program Plan Intro
Economic feasibility of a project and importance of TCO.
Expert Solution & Answer
Explanation of Solution
To know the economic feasibility of a project, we must
study the feasibility analysis which includes the current market demand, the projected growth in the market over the future, projected cash flow, estimating revenues and profiles of the customers and organisations associated.
Total cost of ownership (TCO) is important because it contains the total cost starting from manufacturing the proposed system to its overhead prices, so, when we invest in a system, we may get to know how much we are paying for that product. Reducing TCO reduces the cost so, many organizations use TCO to keep a tab on their expenses.
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EBK SYSTEMS ANALYSIS AND DESIGN
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