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CBAP · Question #31

You are the business analyst for the TGH Organization and are determining if you should buy or build a solution for your company. You have determined that you can create the in-house solution for $78,

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Strategy Analysis

Question

You are the business analyst for the TGH Organization and are determining if you should buy or build a solution for your company. You have determined that you can create the in-house solution for $78,000 with a monthly support cost of $8,765. A vendor can create the solution for $61,000 with a monthly support costs of $7,990. How long will it take your company to break even if you choose the internal solution versus the vendor's solution?

Options

  • A36 months
  • B12 months
  • C6 months
  • D22 months

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Topics

#break-even analysis#build vs buy#cost-benefit analysis#financial modeling
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