Make a recommendation to the vice president of operations

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Question - Custom-built package (CBP) - You received two quotes from software engineers to custom build a system that meets all of SSV's identified needs. The first engineer, who is very well known and has an excellent track record in building similar systems, quoted a price of $150,000. She suggests that the system will take about one year to build and install. The second engineer, who is new to the industry, promises delivery in six months at a firm cost of $80,000. The expected useful life of the custom-built software is four years.

The system can be expanded at a later date; however, the expansion would have to be a customized solution, designed by a software engineer, at a cost that will likely be substantively higher than acquiring additional capacity for the CPP.

Required - Use the CPA Way to assess this situation and make a recommendation to the vice president of operations of SSV.

Reference no: EM132696492

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