Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

This project give thee opportunity for you to help real-world company make decision about whether to rent or buy new technology. You will use excel to compare total 3 year cost of licensing and maintaining new manufacturing software or renting software from application service provider.

Dirt Bikes would like to execute new quality control, production planning, and scheduling software for use by 25 members of its manufacturing staff. Management is trying to find out whether to buy software from commercial vendor along with any hardware needed to run software or to use a hosted software solution from application service provider. You have been asked to aid management with this rent vs. buy decision by computing total cost of each option over a 3 year period.

Costs of purchasing software include initial purchase price of software (licensing fee of $100,000 paid in first year), cost of implementing and customizing software in first year ($20,000), one new server to run software (a first-year purchase of $4,000), one information systems specialist devoting half of his or her time to supporting software ($55,000 in full time annual salary and benefits with a 3% annual salary increase each year after first year), user training in first year (10,000), and cost of annual software upgrades ($5,000).

Costs of renting hosted software are rental fees ($2,500 annually per user), implementation and customization costs ($12,000 in the first year), and training ($10,000 in the first year).

1.) Use excel to compute total cost of renting or buying this software over a 3 year period. Recognize lowest-price alternative which meets Dirt Bike's requirements.

2.) What other factors must Dirt Bikes consider besides cost in finding whether to rent or purchase hardware and software?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M930850

Have any Question? 


Related Questions in Business Management

Assignment discussion question - affirmative

Assignment: Discussion Question - Affirmative Action According to the Equal Employment Opportunity Commission (EEOC), affirmative action (AA) refers to the actions taken to overcome the effects of past or present practic ...

For this weeks discussion you will identify a strategy

For this week's discussion, you will identify a strategy consulting group or company that advertises its services on the internet. To prepare for your original post: Study a strategy consulting organization's products an ...

Researching your career and information technologyto

RESEARCHING YOUR CAREER AND INFORMATION TECHNOLOGY To position yourself in the best possible way to succeed in the business world, you need to start researching your career right now. Here, we would like you to focus on ...

Assignmentlength 3 page double space1what are the different

Assignment Length: 3 page double space 1. What are the different segments for the New Beetle? What are the New Beetle appeals to these segments? Who would you target? How would you position for the segment(s) you want to ...

Explain the conflict-handling styles a manager might adopt

Explain the conflict-handling styles a manager might adopt. Give an example of each.

Assignmentan organizations image recruiting effortshow can

Assignment An Organization's Image Recruiting Efforts? How can an organization's image help its recruiting efforts? In what ways can it hurt those efforts? Your response should contain 500-600 words. All submissions shou ...

Repeat given exercise for the following situation there are

Repeat given Exercise for the following situation. There are two pubs in a neighborhood. Three friends, Andrew, Mike, and Ron, like to cap off their working days with a beer at the pub. Each of them gains a utility of 2 ...

Describe sustainable income and the importance of

Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two (2) items or events that will affect sustainable income of a company. Propose the manner ...

Assignment benefits of business analyticsbusiness analytics

Assignment: Benefits of Business Analytics Business analytics can provide a significant benefit to organizations. If the organization utilizes business analytics and analyzes the data correctly, they will be able to make ...

The purpose of this assignment is to help students

The purpose of this assignment is to help students understand the influence that ethics and social responsibilities have on the strategic planning process.   Assignment Steps Write  a 700-word report in which you address ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen