PMP Exam Simulator
3h 50m 0s
Procurement Management
You are the project manager for a software development project. It will cost you $30,000 to write your own code. Once the code is written, you estimate you’ll spend $4,000 per month updating the software with client information 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 $10 per month per user of the web-based accounting system. You will have roughly 500 clients using the system each month. However, you’ll need an in-house accountant to manage the time and billing of the system, so this will cost you an extra $1,000 per month. How many months can you use the system before it’s better to write your own code rather than hire the vendor?