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Total Cost of Ownership (TCO)
Total Cost of Ownership (TCO) is the overall expense of owning and operating an asset over its entire lifespan. It goes beyond the initial purchase price to include factors like maintenance, repairs, energy consumption, and even disposal costs.
An Example – When buying a car includes not only the purchase price but also costs for fuel, insurance, repairs, and potential resale value. By considering TCO, businesses can make informed decisions about long-term investments.
