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PGMP · Question #332

PGMP Question #332: Real Exam Question with Answer & Explanation

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Life Cycle Management

Question

You are the program manager for your organization and you're trying to determine if you buy or build a software solution for your organization. If you build the solution it'll cost you $75,000 to create and it'll cost you $12,000 per month to support. If you hire a vendor they can build the solution for $63,000 but their solution will cost you $15,500 per month to support. How many months would you have to use your in-house solution to equate to the cost of the vendor's solution?

Options

  • AApproximately 6 months
  • BYou'll never be able to equate to the cost of the vendor's solution.
  • CApproximately 3.5 months
  • DApproximately 10 months

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Topics

#Make-or-Buy Analysis#Financial Management#Cost Analysis#Program Planning
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