How can I calculate the cost of a project over a given amount of time.
- Solution 1: cost 30k setup and 3k/month for as long as we have the service.
- Solution 2: cost 40k setup and 2k/month for as long as we have the service.
- Solution 3: cost 40k setup and 5k/month for as long as we have the service + 20% for monthly service charges.
I calculated these manually (excel) over 3, 6 and 12 year periods.
So for 3 years:
- solution 1: 30K + 3k(36) = 138k
- solution 2: 40k + 2k(36) = 112k
- solution 3: 40K + 2k(36) + 20% = 256k
I just changed out the number of months for each 3 year period and after the first 3 years didn't include the setup cost.
What I'm trying to learn from these calculations is which solution will be the most cost effective (leaving out other factors) over X amount of years. Solution 1 for example is cheaper than solution 3, but after how many years will solution 3 be cheaper than solution 1?
I'm not sure if this is the proper way to do this, if it's acceptable or if there's an easier, better solution.