Mr. Buzz Lightyear is the project manager for a satellite project. He calculates that an in-house solution will cost the company $320,000 to create the top-secret software package and based on OPA information, another $10,000 per month to maintain the software. Ms. Hrt Thickl, the purchaser for the project advises Buzz that it would cost the project $233,000 to purchase the software. However the supplier requires a maintenance plan for each program installed which will cost the project $15,000 per month. Once the satellite is built the company plans on orbiting the satellite in a low orbit around Earth for 730 days.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Mr. Buzz Lightyear is the project manager for a satellite project. He calculates that an in-house solution will cost the company $320,000 to create the top-secret software package and based on OPA information, another $10,000 per month to maintain the software. Ms. Hrt Thickl, the purchaser for the project advises Buzz that it would cost the project $233,000 to purchase the software. However the supplier requires a maintenance plan for each program installed which will cost the project $15,000 per month. Once the satellite is built the company plans on orbiting the satellite in a low orbit around Earth for 730 days.

 

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