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

Organization developmenttraining experiencecomplete the

Organization Development Training Experience: Complete the "Life Goals Exercise", first phase only, letters A-C. 1. Draw a straight horizontal line from left to right to represent your life span. The length should repres ...

Describe the services provided by value-added networks that

Describe the services provided by value-added networks that make it easier for companies to exchange EDI transactions with each other. What are the pros and cons of using valueadded networks for B2B e-commerce? Why don't ...

Answer the following questions1 according to the video clip

Answer the following questions: 1. According to the video clip, Aldi sells only prepackaged products, 95 percent of which bear their own private brand labels. How does the law of demand apply to Aldi's private labeling o ...

Business environment assignment ikea caselemgth 3000

Business Environment Assignment, IKEA case. Lemgth: 3000 words. You are to write a report on the following for marketing arm and future archive purpose:(your word count should be 3000 at most excluding tables, diagames, ...

Assessmentcomplete the followingbullresearch business

Assessment Complete the following: • Research business theories using the Capella library. You may also wish to use the materials provided in the Resources. • Choose a theory that you feel is most relevant for today's en ...

Jim and ester have saved 25000 for a down payment on their

Jim and Ester have saved $25,000 for a down payment on their first house which costs $100,000. The FHA loans for which they qualify requires them to put $10,000 down. A FHA mortgage will be 5.5%. A conventional 30-year m ...

Discusionproperly planning and executing a project can mean

Discusion Properly planning and executing a project can mean the difference in success or failure and hundreds of millions of dollars in the balance sheet for an enterprise. Chapter 13 of the course textbook points out t ...

Would you recommend using the routing table that has a

Would you recommend using the routing table that has a default route or hasn't? Please explain the advantage and disadvantages.

If you had a non performing team member what motivation

If you had a non performing team member, what motivation theory and approach would you use to get the team member on track?

In the case of news this practice in my view results in

In the case of news, this practice, in my view, results in inefficient communication. I question how much of televisions' nightly news effort is really absorbable and understandable. Much of it is what has been aptly des ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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