You are the PM on a project, and you need to decide which vendor to choose as a supplier for one of the components of a product. Vendor A has offered the component to you at $50,000 up front with a recurring cost of $5,000 per year. Vendor B would charge you $70,000 as the initial fee then a $2,000 cost per year. What is the point in years which the costs will be equal? (3 points) If the project is supposed to last 5 years, which vendor should you choose? (3 points)

Here,For vendor A:Initial cost= $50,000Annual cost= $5,000For vendor B:Initial cost= $70,000Annual…

Answered: You are the PM on a project, and you…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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You are the PM on a project, and you need to decide which vendor to choose as a supplier for one of the components of a product. Vendor A has offered the component to you at $50,000 up front with a recurring cost of $5,000 per year. Vendor B would charge you $70,000 as the initial fee then a $2,000 cost per year.

What is the point in years which the costs will be equal? (3 points)

If the project is supposed to last 5 years, which vendor should you choose? (3 points)

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