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JK0-017 · Question #352

A project needs software. After analyzing the choices, it is determined that if made in- house, it will cost $100,000. However, if the software is purchased, the cost would be $25,000. After…

The correct answer is C. $165,000. See the full explanation below for the reasoning.

Question

A project needs software. After analyzing the choices, it is determined that if made in- house, it will cost $100,000. However, if the software is purchased, the cost would be $25,000. After reviewing the successful implementations in the past, if made in-house, there is a 20% chance that $30,000 would be spent on bug fixes. If the software is purchased, there is a 70% chance that $200,000 in training and customizations would be required. Which of the following reflects the expected monetary value of purchasing the software?

Options

  • A$106,000
  • B$157,500
  • C$165,000
  • D$225,000

How the community answered

(38 responses)
  • A
    13% (5)
  • B
    5% (2)
  • C
    79% (30)
  • D
    3% (1)

Community Discussion

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