Dirt Bikes would like to implement new production planning, quality control, and scheduling software for use by 25 members of its manufacturing staff. Management is trying to determine whether to purchase the software (along with any hardware required to run the software) from a commercial vendor, or to use a hosted software solution from a software service provider. (The hosted software runs on the service provider’s computer.) You have been asked to help management with this rent vs. buy decision by calculating the total cost of each option over a three-year period.
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