ExpertHard1 markMultiple Choice
PMP · Question 41 · Task 11: Plan and manage procurement
A project manager is deciding whether to build a solution in-house or buy it. Building it costs $50,000 upfront plus $1,000/month maintenance. Buying it costs $10,000 upfront plus $3,000/month subscription. At what month do the costs break even?
A project manager is deciding whether to build a solution in-house or buy it. Building it costs $50,000 upfront plus $1,000/month maintenance. Buying it costs $10,000 upfront plus $3,000/month subscription. At what month do the costs break even?
Answer options:
A.
10 months
B.
15 months
C.
20 months
D.
25 months
How to approach this question
Set up the equation: Cost A = Cost B. Solve for M (months).
Full Answer
C.20 months✓ Correct
C
Task 11 involves Make-or-Buy analysis. You save 40k upfront by buying, but lose 2k/month. 40k / 2k = 20 months to break even.
Common mistakes
Calculation errors.
Practice the full PMP Process Domain Practice Exam
60 questions · hints · full answers · grading
More questions from this exam
Q01A project team is developing a new financial software product using an agile approach. The produc...HardQ02A hybrid project is developing a new smart home device. The hardware component follows a predicti...HardQ03During a predictive construction project, the client requests a change to the interior design mat...HardQ04A project manager is leading a team to develop a new mobile application. The market is highly vol...HardQ05A global project team is facing difficulties with communication due to time zone differences. Cri...Hard