An SAP project implementation is expensive. However, the potential rewards make up for the costs. SAPs R/3 product is sold on a price per user basis. Your company has negotiated with SAP for $5,000 per user and an annual maintenance and upgrade cost of 10 percent. SAP implementation costs are dependent upon the period, resource requirements, and hardware used in the implementation. Your initial estimation for implementation is about one year. You are planning to hire 15 people to complete all the required modules including yourself, the project manager. The hardware needed is three servers: a development server, a testing server, and a production server. Assume labor costs to run at $100 per hour. The following are the probability of success of various processes with the minimum number of work hours to implement the SAP project: Implementation Process Probability of success Implementation period SDLC 75% 8 months Spiral 55% 10 months Scrum 45% 12 months XP 45% 12 months Which process will you choose? What will be the total estimated cost of the project? For this type of project, which methodology is better to manage? Why?

Implementation Process	Probability of success	Implementation period
SDLC	75%	8 months
Spiral	55%	10 months
Scrum	45%	12 months
XP	45%	12 months