Question: Thandi is a Procurement Manager at OMT Cellular Networks. For their fibre installation project, the company requires a digger. The once-off direct cost of a

Thandi is a Procurement Manager at OMT Cellular

Thandi is a Procurement Manager at OMT Cellular Networks. For their fibre installation project, the company requires a digger. The once-off direct cost of a digger is R1 200 000,00 (One million and two hundred thousand rands). Also, the once-off indirect cost of procuring it R300 000,00 (three hundred thousand rands). If OMT decides to hire it from Hire Me (Pty) Ltd, they will pay R600 000,00 (six hundred thousand rands) as deposit/down payment and R100 000,00 (one hundred thousand rands) per month OMT Cellular Networks will have another project immediately after this one for another 6 months in which they will need a digger Would you advise the company to buy or hire? Give reason(s) for your answer. (4)

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