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A medium-sized enterprise plans to develop a software system to support project selection over the next 10 years. The cost conditions to be encountered during
A medium-sized enterprise plans to develop a software system to support project selection over the next 10 years. The cost conditions to be encountered during their lifetime are classified as development, programming, operation and support for each project. Three systems have been proposed, A (custom), B (adapted), and C (current). The costs are as in the table below. Knowing that the quarterly interest rate is 2.18%, choose the best alternative using present value analysis.
\begin{tabular}{|l|l|l|} \hline Alternative & Cost classes & Cost \\ \hline \hline \multirow{5}{*}{ A } & Development & Now100.000TL1yearlater150.000TLpayable \\ \cline { 2 - 3 } & Programming & Now45.000TL1yearslater35.000TLpayable \\ \cline { 2 - 3 } & Business & Annually 50.000TL \\ \cline { 2 - 3 } & Support & Annualy 30.000TL \\ \hline \hline \multirow{5}{*}{ B } & Development & Now 10.000TL \\ \cline { 2 - 3 } & Programming & Now 45.000TL \\ & B year later 30.000TL payable \\ \cline { 2 - 3 } & Business & Annually 80.000TL \\ \cline { 2 - 4 } & Support & Annually 40.000TL \\ \hline \hline C & Business & Annually 150.000 \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Alternative & Cost classes & Cost \\ \hline \hline \multirow{5}{*}{ A } & Development & Now100.000TL1yearlater150.000TLpayable \\ \cline { 2 - 3 } & Programming & Now45.000TL1yearslater35.000TLpayable \\ \cline { 2 - 3 } & Business & Annually 50.000TL \\ \cline { 2 - 3 } & Support & Annualy 30.000TL \\ \hline \hline \multirow{5}{*}{ B } & Development & Now 10.000TL \\ \cline { 2 - 3 } & Programming & Now 45.000TL \\ & B year later 30.000TL payable \\ \cline { 2 - 3 } & Business & Annually 80.000TL \\ \cline { 2 - 4 } & Support & Annually 40.000TL \\ \hline \hline C & Business & Annually 150.000 \\ \hline \hline \end{tabular}Step by Step Solution
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