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A software project was estimated at 352 Function Points (FP). A four person team will be assigned to this project consisting of a project manager who will be paid ₹80,000 per month, two programmers who will be paid ₹60,000 per month each and one tester who will be paid ₹50,000 per month. The average productivity for the team is 8 FP per person month. Which of the following represents the projected cost of the project?

Pick an option to check yourself, or open the answer below.

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Correct answer: D. ₹27,50,000

Explanation

Effort first: at a productivity of 8 FP per person-month, 352 FP needs 352 / 8 = 44 person-months. Next the average monthly cost of one team member: (80,000 + 60,000 + 60,000 + 50,000) / 4 = 250,000 / 4 = ₹62,500 per person-month. Cost = effort × average rate = 44 × 62,500 = ₹27,50,000. Option 1 (28,16,000) comes from using ₹64,000 as the rate, and option 2 from using only 33.44 person-months, so both are distractors built on the wrong intermediate value.

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