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Systems Analysis and Design (Shell...

11th Edition
Scott Tilley + 1 other
ISBN: 9781305494602

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BuyFindarrow_forward

Systems Analysis and Design (Shell...

11th Edition
Scott Tilley + 1 other
ISBN: 9781305494602
Textbook Problem

How do you know if a project is economically feasible? Why is TCO important?

Program Plan Intro

Economic feasibility of a project and importance of TCO.

Program Explanation

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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