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| | Analyzing Acquisition Cost - Life Cycle Bid |
 | | Customer has asked bidders to provide purchase price for unit, a guarantee for repair, parts, and labor, and a guarantee for repurchase price of unit in five years or 5,000 hours of use. |
 | | One might be tempted to conclude, however, that since Bidder B had the confidence to provide a guaranteed repurchase price of the machine at the end of five years or 5,000 hours of use, that Bidder B might be the smarter choice for the agency. |
 | | The wholesale value of Bidder A was computed by taking equipment bid price and projecting the machine would have a wholesale value, as-is where-is, in five years or 5,000 hours of 55 percent of the bid price ($70,655 x 55% = $38,800). |
| www.deere.com /en_US/cfd/bestbid/docs2/bb_analyzing_lifecycle.html (559 words) |
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