Suppose you are evaluating between buying a server and renting
it for a project. The purchase cost of the server is $10,000, plus
an annual maintenance cost of $200 per month. The maintenance cost
is payable starting from the time the server is purchased. The
renting cost of the server is 2200 per month, including the
maintenance cost.
a. If the project lasts for 6 months, which option would result
in a lower cost for the project? Show all workings. (5 marks)
b. Briefly describe five advantages of outsourcing. (5
marks)
Suppose you are evaluating between buying a server and renting it for a project. The purchase cost of the server is $10,
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