You are trying to determine if you should buy or build a solution for your program. If you build the solution it'll cost you $45,000 to create and $7,000 per month to support. A vendor reports that they can create the solution for you for $1,000 but you'll have to pay them $9,000 per month to support the solution. Should you buy or build this solution?
To determine whether to buy or build the solution, we need to compare the total costs for both options over a period of time. For building the solution, the costs are $45,000 upfront and $7,000 per month. For buying the solution, the costs are $1,000 upfront and $9,000 per month. Let's calculate the total costs: For building, the total cost is $45,000 + $7,000 * months. For buying, the total cost is $1,000 + $9,000 * months. Equating the two to find the breakeven point: $45,000 + $7,000 * months = $1,000 + $9,000 * months. Simplifying, we get $44,000 = $2,000 * months, which results in months = 22. Therefore, building the solution is more cost-effective if you'll use it longer than 22 months.
A is correct answer