The preliminary investigation of a software project has been completed. Two different project teams have estimated the costs associated with the development and maintenance of a new system. One team based their estimates on the assumption that the Waterfall system development process would be used for the project; the other team plans to follow the Agile approach. A third option is to purchase off-the-shelf software that provides nearly all the benefits of a custom-built solution. Review the estimates below and choose the best approach for the project: Waterfall development, Agile development, or off-the-shelf software implementation. Provide a solid rational for your choice. Identify any assumptions you must make in reaching your decision.

Total effort months to complete the system Cost per effort month Cost of software package Elapsed time until a partial working version is available (months) Elapsed time until all currently envisioned features are available (months) Annual savings generated by the complete system Waterfall 45 $10k Not applicable $180k Agile 38 $10k $180k Off-the-Shelf Software $10k $350k Not applicable $160k