You are helping the IT team at Game Technology study several software acquisition options for

their Customer Contact Care system $($C$3$

$).$ First, you review Chapter $7$ of your systems analysis

textbook and the material on financial analysis tools $($templates are available on Moodle$).$ The IT

team is considering two commercial software packages and an in$-$house development option.

They prepared the following summary:

Option Description Costs Benefits

Software

Solutions,

Inc.

Software package

Four$-$year useful life

Less flexible than inhouse system

Some customizing needed

$$8,000$ to purchase

$$2,000$ to install and

configure

$$3,000$ to load existing data

$$1,000$ additional hardware

needed

$$3,000$ annual support fee

$$8,000/$yr$.$ through

positive customer

response. Cannot predict

other specific savings.

Increased sales,

improved customer care,

and better productivity

are expected.

CRM

Corp.

Software package

six$-$year useful life

Less flexible than inhouse system

Moderate customizing

needed

Runs slower than other

options

$$7,000$ to purchase

$$1,500$ to install and

configure

$$2,200$ to load existing data

$$4,000$ additional hardware

needed

$$1,500$ annual support fee in

all six years

$$8,000/$yr$.$ through

positive customer

response. Cannot predict

other specific savings.

Increased sales,

improved customer care,

and better productivity

are expected.

Develop

C$3$

system

in$-$house

In$-$house system

five$-$year useful life, can

use our software and

hardware

Easiest to update and

maintain

$$18,000$ to develop, install,

and configure

$$2,500$ to load existing data

Existing staff can handle

support

$$8,000/$yr$.$ through

positive customer

response. Cannot predict

other specific savings.

Increased sales,

improved customer care,

and better productivity

are expected.