Our biggest design partner offers $120,000 if we build their AI workflow. Do you take the deal?
Make your call first. Use the published answer and rubric to examine your reasoning when you are ready.
Case briefRead the inputs, then make your call
Fictional warranty-claim assistant. Broad scope includes automatic submission and custom forms; narrow scope drafts evidence-linked claims for human submission. Neither offer is signed. Compare one year in USD before tax and company-wide overhead. Assume annual payment is collected and twelve months of service delivered. Monthly costs include ongoing maintenance; initial engineering is separate.
| Contract payment | Broad: 120000. Narrow: 60000. |
|---|---|
| Initial engineering weeks | Broad: 8. Narrow: 3. |
| Loaded cost per engineering week | Broad: 5000. Narrow: 5000. |
| Monthly delivery and support cost | Broad: 3000. Narrow: 1000. |
| Paid months in this comparison | Broad: 12. Narrow: 12. |
| Displaced shared feature | The extra engineering time would otherwise deliver a permissions feature forecast to contribute 45000 USD over the same period, after its own costs. This forecast is uncertain. |
Your task. Calculate both first-year contributions, compare the displaced work, recommend a commercial scope and define acceptance. Explain what would change the choice, including renewal and cash timing.
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