You are the project manager for your organization. You have identified a risk event you're your organization could manage internally or externally. If you manage the event internally it will cost your project $578,000 and an additional $12,000 per month the solution is in use. A vendor can manage the risk event for you. The vendor will charge $550,000 and $14,500 per month that the solution is in use. How many months will you need to use the solution to pay for the internal solution in comparison to the vendor's solution?

Question

Quizplus · Accepted Answer

To find the breakeven point, set the costs equal: $578,000 + $12,000x = $550,000 + $14,500x. Solving for x gives approximately 11 months.

You Are the Project Manager for Your Organization