Program Management Professional (PgMP) — Question 78

You are the program manager for your organization and you're trying to determine if you buy or build a software solution for your organization. If you build the solution it'll cost you $75,000 to create and it'll cost you $12,000 per month to support. If you hire a vendor they can build the solution for $63,000 but their solution will cost you $15,500 per month to support. How many months would you have to use your in-house solution to equate to the cost of the vendor's solution?

Answer options

• A. Approximately 6 months
• B. You'll never be able to equate to the cost of the vendor's solution.
• C. Approximately 3.5 months
• D. Approximately 10 months

Correct answer: C

Explanation

The correct answer is C because the total cost of the in-house solution can be calculated as $75,000 + $12,000 per month, while the vendor's cost is $63,000 + $15,500 per month. Setting these equations equal and solving for the number of months shows that about 3.5 months is when the costs would equate. The other options do not reflect the correct calculation based on the costs provided.