Licensing from an AI startup called AutoDrive was the third path evaluated. They offered a lower $$5$ million upfront fee but higher estimated annual costs of $$3$ million for maintenance$/$updates$,$ $$50,000$ for customization, $$150,000$ for new infrastructure, and $$100,000$ for additional staff. Smith projected $$5$ million in annual benefits. While the startup was more flexible, Smith worried about their long$-$term viability and ability to support a major automaker over the decisive years of vehicle autonomy deployment. Dependence on a small company carried greater risks than a larger firm.

Evaluates the cost$-$effectiveness of the acquisition, considering upfront investment, ongoing costs, $($TCO$)$ and the projected return on investment $($ROI$)$ over a $5-$year horizon and discount rate $5\%.$