You are the project manager for a software development project for an accounting system that will operate over the Internet. Based on your research, you have discovered it will cost you $25,000 to write your own code. Once the code is written you estimate you?ll spend $3,000 per month updating the software with client information, government regulations, and maintenance.

A vendor has proposed to write the code for your company and charge a fee based on the number of clients using the program every month. The vendor will charge you $5 per month per user of the web-based accounting system. You will have roughly 1,200 clients using the system per month.

However, you?ll need an in-house accountant to manage the time and billing of the system, so this will cost you an extra $1,200 per month.

How many months will you have to use the system before it is better to write your own code than to hire the vendor?

A.

3 months B.

4 months C.

6 month D.

15 months