Question: Topic: software engineering A company heavily involved in software development is considering investing in a full life cycle CASE tool. Initial cost estimates: for acquisition,

Topic: software engineering

A company heavily involved in software development is considering investing in a full life cycle CASE tool. Initial cost estimates: for acquisition, $4000 per developer seat; for maintenance, $800 per year. There are 15 developers on staff, with an average annual salary of $70000.

What would the improvement in developer productivity need to be for the company to break even (costs == benefits) at the end of the first year? Show the calculations that result in your answer.

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What would the improvement in developer productivity need to be for the company to break even at the end of the second year? Show the calculations that result in your answer.

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Are there additional factors that are not mentioned above that should be included when calculating costs? If so, what are they?

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