1. You are the PM on a project, and you need to decide which vendor to choose as a supplier for one of the components of a product. Vendor A has offered the component to you at $50,000 up front with a recurring cost of $5,000 per year. Vendor B would charge you $70,000 as the initial fee then a $2,000 cost per year.

1. What is the point in years which the costs will be equal? (3 points)

b.If the project is supposed to last 5 years, which vendor should you choose? (3 points)