Initial development:
Research and planning: $5,000
Design and prototyping: $15,000
Development: $ 70,000
Testing and launch: $10,000
Total: $ 100,000
Annual costs for support and updates (20% of the development cost):
Year 1: $ 20,000
Year 2: $ 20,000
Year 3: $ 20,000
Total for 3 years: $ 60,000
Additional costs for 3 years:
Marketing, training, infrastructure: $ 20,000 * 3 = $ 60,000
Total total cost of ownership for 3 years:
Initial development: $ 100,000
Support and updates for 3 years: $ 60,000
Additional costs for 3 years: $ 60,000
Total: $220,000