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Program Management Professional · PMI
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Keep it short: ( 75000 – 63000 ) / ( 15500 - 12000) = ~3.5
Build year 1 (75000+12000) = 87000, yr 2 87000+12000 = 99000; yr 3 99000+12000= 111000; Yr 4 111000+12000 =123000 Buy year 1 (63000+15500)=78500; yr 2 78500+15500 = 94000; yr 3 94000+15500 = 109500; yr 4 109500+15500 =125000 as you can see year 4 build is less than buy and if you do the calculation for 6 months you'll see it's about 3.5 months for the build cost to be lesser than buy cost. Hope that helps. Maybe there's an actual formula for it too
Build year 1 (75000+12000) = 87000, yr 2 87000+12000 = 99000; yr 3 99000+12000= 111000; Yr 4 111000+12000 =123000 Buy year 1 (63000+15500)=78500; yr 2 78500+15500 = 94000; yr 3 94000+15500 = 109500; yr 4 109500+15500 =125000 as you can see year 4 build is less than buy and if you do the calculation for 6 months you'll see it's about 3.5 months for the build cost to be lesser than buy cost. Hope that helps. Maybe there's an actual formula for it too