Question 1 (choose 2)
Which values does the TCO Calculator provide? (Choose two.)
- AOption A:
Return on investment
- BOption B:
Cost to company (CTC)
- COption C:
Capital expenditure
- DOption D:
Net present value
- EOption E:
Operational expenditure
Show answer and explanation
Correct answer: B, D
The TCO Calculator is a tool that helps you compare the total cost of ownership (TCO) of different IT infrastructure solutions, such as on-premises, cloud, or hybrid.
The TCO Calculator provides two values that can help you evaluate the financial benefits of each solution: return on investment
(ROI) and net present value (NPV).
Return on investment (ROI) is a measure of the profitability of an investment, calculated as the ratio of the net income generated by the investment to the initial cost of the
investment. A higher ROI indicates a more profitable investment. The TCO Calculator estimates the ROI of each solution over a specified period of time, based on the
expected savings, costs, and revenues.
Net present value (NPV) is a measure of the present value of the future cash flows of an investment, discounted by a certain interest rate.
A positive NPV indicates that the investment is worth more than its initial cost. The TCO Calculator estimates the NPV of each solution over
a specified period of time, based on the expected savings, costs, revenues, and discount rate.
The TCO Calculator can help you compare the ROI and NPV of different IT infrastructure solutions and choose the one that best suits your business needs and goals.
References: TCO & ROI Calculators for IT Infrastructure – Total Cost of Ownership | HPE , TCO Calculator User Guide , TCO Calculator FAQ