QuestionQ608

Project Management Concepts

A project manager must obtain software for a 15-person project team to use solely for three years. Based on the following information:

Question Image

Which option is best for this situation?

  • A Make
  • B Update
  • C Buy
  • D Lease
Explanation

Leasing costs $15,000 plus $35 per user per month for 15 users over 36 months, or $33,900 before contingency costs. Adding the 40% probability of a $60,000 customization cost gives an expected total of $57,900, which is lower than updating ($62,000), making ($90,500), or buying ($224,000).

Community Discussion

No comments yet. Be the first to start the discussion!