You are the project manager for your organization. You have identified a risk event you're your organization could manage internally or externally. If you manage the event internally it will cost your project $578,000 and an additional $12,000 per month the solution is in use. A vendor can manage the risk event for you. The vendor will charge $550,000 and $14,500 per month that the solution is in use. How many months will you need to use the solution to pay for the internal solution in comparison to the vendor's solution?

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B. Approximately 11 months Internal cost: $578,000 + $12,000x. Vendor cost: $550,000 + $14,500x. Setting them equal: 578,000 + 12,000x = 550,000 + 14,500x, which simplifies to 28,000 = 2,500x, giving x = 11.2 months. This rounds to approximately 11 months, meaning the internal solution becomes more expensive than the vendor solution after roughly 11 months of use.

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A. Approximately 13 months 13 months is incorrect; using x = 13 yields internal = $734,000 and vendor = $738,500, which are past the break-even point, not at it.

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C. Approximately 15 months 15 months is too high; the break-even calculation yields approximately 11.2 months, not 15.

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D. Approximately 8 months 8 months is too low; at 8 months the internal cost is $674,000 and vendor is $666,000, meaning costs have not yet equalized.

You are the project manager for your organization. You have identified a risk event you're your organization could manage internally or externally. If you manage the event internally it will cost your

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