Real-Life Math -- Solution
As CIO, you have to decide whether to upgrade computer software
or purchase a new system. First, you must decide which choice is the most
economical. Then you will weigh other decisions such as the quality and speed
of each type of software.
1. After 2 years, how much will you have
spent on the Danga computer system?
Cost to upgrade Danga
software: $1,050 per computer
10 computers x $1,050 = $10,500
In
2 years, you will need to upgrade again for an additional $200 per computer.
10
computers x $200 = $2,000
Total cost over two years:
$10,500
+ $2,000= $12,500
2. After 2 years, how much will
you have spent on the Cat computer system?
Cost to purchase
new computers: $1,200 each
10 x $1,200 = $12,000
Cost
to purchase new software: $250 each
10 x $250 = $2,500
$12,000
+ $2,500 = $14,500
3. Which system will cost less
after 2 years?
The Danga system will cost $12,500 after 2 years. The
Cat system will cost $14,500 after 2 years. The Danga system will cost less
over this period of time.