## Practice Question

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komal
Participant
Posts: 73
Joined: Wed May 31, 2017 4:34 pm

### Practice Question

A project manager needs to develop a web site that allows users to submit expenses. There are two vendors competing for the project. Vendor A proposes an upfront fee of \$20,000 and a maintenance fee of \$4,000 per month. Vendor B proposes an upfront fee of \$10,000 and a maintenance fee of \$5,000 per month. Which vendor will be a better choice and after how many months of maintenance?

Vendor A after 10 months of maintenance

Vendor B after 10 months of maintenance

Vendor A after 5 months of maintenance

Vendor B after 5 months of maintenance
manishpn
Expert
Posts: 2588
Joined: Sat Jan 04, 2014 3:55 pm

### Re: Practice Question

komal wrote:A project manager needs to develop a web site that allows users to submit expenses. There are two vendors competing for the project. Vendor A proposes an upfront fee of \$20,000 and a maintenance fee of \$4,000 per month. Vendor B proposes an upfront fee of \$10,000 and a maintenance fee of \$5,000 per month. Which vendor will be a better choice and after how many months of maintenance?

Vendor A after 10 months of maintenance

Vendor B after 10 months of maintenance

Vendor A after 5 months of maintenance

Vendor B after 5 months of maintenance

This is a math question and as a practice we encourage student to attempt the math question first , getting a ready answer in math wont help you learn
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
nazrulq
Contributor
Posts: 270
Joined: Sun Feb 26, 2017 6:06 am

### Re: Practice Question

First it is to find when the time will be equal , Let the number of months are D.

Vendor A

20000 + 4000D

Vendor B

10000+ 5000D

20000 +4000D = 10000+5000D

1000D = 10000
D=10 Months

After 10 months using vendor, A will be profitable for maintenance!