Certification of Capability in Business Analysis (CCBA) — Question 329

You are the business analyst for your organization. You're considering if you should make a solution or purchase it from a vendor. If your team creates the solution, it will cost $286,000 and will cost $2,400 per month to support. The vendor's solution, however, will cost $239,000 and will cost $2,850 per month to support. How long will you need to use your in-house solution to be more cost effective than the vendor's proposed solution?

Answer options

• A. 105 months
• B. 32 months
• C. 64 months
• D. 19 months

Correct answer: C

Explanation

The correct answer is C because the total cost of the internal solution becomes less than that of the vendor's solution after 64 months. Options A, B, and D do not accurately reflect the point at which the in-house solution becomes more economical compared to the vendor's offering.