Question: 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

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 $3000 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 1200 clients using the system each 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 $1200 per month. How many months can you use the system before it’s better to write your own code rather than hire the vendor?

A. 3 months B. 4 months C. 6 months D. 15 months

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Project Management For Small Projects Questions!