You are entrusted with deciding whether to make or buy software. The make decision has a setup cost of $15,000 and a monthly maintenance cost of $1,200. A vendor will sell the software for an initial cost of $11,400 and a monthly cost of $3,000. For how many months must the company use this software to support a make decision?

You are entrusted with deciding whether to make or buy software. The make decision has a setup cost of $15,000 and a monthly maintenance cost of $1,200. A vendor will sell the software for an initial cost of $11,400 and a monthly cost of $3,000. For how many months must the company use this software to support a make decision?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 76P

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