4. 4.38 The Health Department of Winter Park plans to develop an upgraded software system to assist medical personnel in the treatment of opioid-addicted patients. A program cost estimation approach

(discussed earlier in section 1.8) has been used to make estimates for a 10-year progam with categories of development, programming, operating, and support costs. There are three alternatives under consideration, identified as A (tailored system), B (adapted system), and C (current system). The cost estimates are summarized below.

Perform a life-cycle cost analysis to identify the best alternative at 8%

per year using

(a) tabulated factors first, then

(b) a spreadseet to verify your selection.

Table Summary: Table divided into 3 columns with the headings marked from left to right as: Alternative; Cost Component; and Estimated Cost and Time Frame.

Alternative Cost Component Estimated Cost and Time Frame A Development $250,000 now, $150,000 years 1–4 Programming $45,000 now, $35,000 years 1–

2 Operation $50,000 years 1–10 Support $30,000 years 1–5 B Development $10,000 now Programming $45,000 year 0, $30,000 years 1–3 Operation $80,000 years 1–10 Support $40,000 years 1–10 C Operation $175,000 years 1–10