Given the following information concerning a four-year planning horizon for a particular ERP system implementation:...
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Given the following information concerning a four-year planning horizon for a particular ERP system implementation: Licensing rights for all four (4) years - $400,000 Application server and database server purchase - $75,000 (four-year expected life) Computer purchases and upgrades - $28,000 (one-time charge) Maintenance contract for computers and servers -- $5,500 per year Training - $10,000 for the first year, $5000 for the remaining three years Consulting - Free for the first 6 months then $12,000 per year (prorated for partial years) New hire - Database/ERP system administrator at $200,000 annual salary (includes benefits) Suppose the total costs for ERP system implementation over the four year planning horizon is $1,440,000. It would be better to use SaaS to contract out ALL of the above expenses for a convenient monthly fee as long as that fee was less than: $48,000 $30,000 $12,000 $25,000 not enough information to determine
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