Select Page

Software Project Decision Point Essay and Calculation

Need help with essays, dissertations, homework, and assignments? Stop wasting time and post your project on tutlance and get a real professional to do your work at CHEAP prices. Watch while Tutlance experts outbid each other.

Return on Investments (ROI) Analysis

Option 1 bears the following costs -\$200,000 – \$85,000 – \$50,000 – 5*\$40,000 = – \$535,000. However, it is possible to save 5*\$61,000 = \$305,000. As a result, the spending of the company will be \$230,000. Subsequently, the Total Cost of Ownership, TCO is \$230,000 for this option.

The expenses will be as follows -\$250,000 – 3*\$75,000 = – \$475,000 for Option 2. The company will be in a position to save 5*\$25,000 = \$125,000. Consequently, the expenditure of the company on this software will be \$350,000. It means that \$350,000 will be the TCO for this option.

ROI = (Gain from Investment – Cost of Investment) / Cost of Investment

Option 1: Gain from Investment = \$1,000,000* 1.1 + \$1,100,000 * 1.1 + \$1,210,000 *

Tired of searching for online content? Why not post your project on tutlance and get a real professional to do your work at CHEAP prices. Watch while Tutlance experts outbid each other.

1.1 + \$1,331,000 * 1.1 + \$1,464,100*1.1 = \$6,716,000

Cost of Investment = \$230,000

ROI = (\$6,716,000 – \$230,000) / \$230,000 = 28.2%

Option 2: Gain from Investment = \$6,716,000

Cost of Investment = \$350,000