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 $3,000 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 per month. However, you'll need an in-house accountant to manage the time and billing of the system, so this will cost you and extra $1200 per month. How many months will you have to use the system before it is better to write your own code than to hire the vendor?
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