You are the business analyst for the TGH Organization and are determining if you should buy or build a solution for your company. You have determined that you can create the in-house solution for $78,000 with a monthly support cost of $8,765. A vendor can create the solution for $61,000 with a monthly support costs of $7,990. How long will it take your company to break even if you choose the internal solution versus the vendor's solution?

Question

Quizplus · Accepted Answer

The initial cost difference is $17,000 ($78,000 - $61,000). The monthly cost difference is $775 ($8,765 - $7,990). Dividing the initial cost difference by the monthly cost difference gives 22 months to break even.

You Are the Business Analyst for the TGH Organization and Are