Software Project Decision Point. Accounting, Finance Math Problem (Math Problem Sample)

Software Project Decision Point
Name of Student
Institution Affiliation
Software Project Decision Point
Return on Investments (ROI) Analysis
Option 1 bears the following costs -$200,000 - $85,000 - $50,000 - 5*$40,000 = - $535,000. However, it is possible to save 5*$61,000 = $305,000. As a result, the spending of the company will be $230,000. Subsequently, the Total Cost of Ownership, TCO is $230,000 for this option.
The expenses will be as follows -$250,000 - 3*$75,000 = - $475,000 for Option 2. The company will be in a position to save 5*$25,000 = $125,000. Consequently, the expenditure of the company on this software will be $350,000. It means that $350,000 will be the TCO for this option.
ROI = (Gain from Investment - Cost of Investment) / Cost of Investment