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Choosing office furniture

Furniture Total Cost of Ownership (TCO) Quick Guide

Estimating all the direct and indirect costs associated with your furniture over its’ lifetime can be complicated. The following is a simplified, easy to understand analysis of upholstered contract seating estimation.

Total Cost of Ownership (TCO) = the initial capital outlay + life-time operating costs + life-time maintenance costs + disposal cost.

When expressed as a cost per year, this allows an instant, easy and accurate comparative of the true value for money.

TCO per year =TCO/the lifespan of the asset.

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