Cost of Ownership (CoO) models are increasingly a part of the semiconductor equipment evaluation and selection process. These models enable semiconductor manufacturers and equipment suppliers to quantify a system in terms of dollars per wafer. Because of the complex nature of the semiconductor manufacturing process, there are several key attributes that must be considered in order to accurately reflect the true 'cost of ownership'. While most CoO work to date has been applied to production equipment, the need to understand cost of ownership for inspection and metrology equipment presents unique challenges. Critical parameters such as detection sensitivity as a function of size and type of defect are not included in current CoO models yet are, without question, major factors in the technical evaluation process and life-cycle cost. This paper illustrates the relationship between these parameters, as components of the alpha and beta risk, and cost of ownership.