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Comparing total cost of ownership while making equipment/tool purchase


Tool A

Tool B (Buying 3 tools each 350000 after service life 18months)

Cost of tool

125000

105000

Life of tool (Months)

48

54

Servicing cost after warranty (INR)

40000

30000

Transporation cost

0

5000

Cast of ownership

165000

140000

Monthly cost of ownership(INR)

3438

2593

So in current time spending is very crucial one should divide their expenditure. Imagine you need 5-10-20-25 tools how much initial cost you can save for the organisation. Upcoming costs are not hidden but expected costs.

Same comparison is valid for other different equipment used in construction industry.

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