Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

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

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

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

The costs of renting hosted software are the 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 find out the total cost of renting or purchasing this software over a 3 year period. Identify the lowest-price alternative that meets Dirt Bike's requirements.

2.) What other factors should Dirt Bikes consider besides cost in determining whether to rent or buy the hardware and software?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928618

Have any Question? 


Related Questions in Business Management

Making reference to the concept of the interest rate parity

Making reference to the concept of the interest rate parity explain how a change in exchange-rate expectations could lead to an immadiate change in the actual exchange rate.

The plant manager noticed a need to lessen the amount of

The plant manager noticed a need to lessen the amount of waste materials, which occur in the production process. A task force was set up, composed of the plant manager and two of her supervisor, to examine the problem. T ...

Dust james owns and operates a 300-acre farm in northern

Dust James owns and operates a 300-acre farm in northern Maine. Having recently abandoned potato growing. Dusty plans to grow wheat, corn, oats, and soybeans, for the upcoming season. he wishes to grow at least 30,000 bu ...

Compare and contrast two common models for managed care

Compare and contrast two common models for managed care organizations. For each model, identify the inherent incentives that exist for the physicians who provide care to the patients within the model.

1 explain the measures of univariate variable description

1: Explain the measures of univariate variable description that we have (i.e., frequency, central tendency, and dispersion). What do these measures tell us? Why are they useful? 2: What is the difference between manifest ...

Discuss the importance of employee security awareness

Discuss the importance of employee security awareness training. What innovative ways should company's implement security training? Please provide examples to support your answer.

Assignmentprimary task response within the discussion board

Assignment Primary Task Response: Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions ...

There are new approaches for system building in the digital

There are new approaches for system building in the digital firm era. What is your opinion and ideal information system that works for global management?

Homework helpnbspstatistics posted Homework Help: Statistics Posted

Homework Help: Statistics Posted by Shayna on Thursday, February 19, 2015 at 10:15pm. Use the 5-step hypothesis testing framework to answer the following 2 questions: Step One: Stating the hypothesis  Step Two: Choosing ...

Entrepreneurship project essaythe entrepreneurship project

Entrepreneurship Project Essay The Entrepreneurship Project is hypothetical and intended to enhance your understanding of developing your own business opportunity. NOTE: if you are currently working on an opportunity tha ...

  • 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