Chapter 5 Running Case Solution
Alternative 1: Buying the Software
Features Year 1 Year 2 Year 3
Number of users 25 25 25
Software license fee 100,000.00 0.00 0.00
User Training 10000 0 0
Alternative 2: Renting the Software from an ASP
Features Year 1 Year 2 Year 3
Number of users 25 25 25
Software rental fee ($2500 per user) 62500 62500 62500
Software upgrades 5,000.00 5,000.00 5,000.00
Hardware 1@$4000 4,000.00 0.00 0.00
User Training 10,000.00 0.00 0.00
Technical Support 1/2 time 27,500.00 28,325.00 29,174.75