Comparative evaluation of software development strategies based on Net Present Value

نویسنده

  • Hakan Erdogmus
چکیده

Assessment of alternative development strategies in a software project can be difficult due to the interactions among the multiple factors involved. A rigorous, value-based approach allows a more objective comparison of the available alternatives. For example, such an approach can steer the analysis of the economic incentive to choose a strategy that promises rapid development over a strategy that promises high earnings. The corporate finance concept of Net Present Value is used in this context to define a hierarchy of comparison metrics based on six high-level variables. The top-level metric measures relative economic incentive. The analysis focuses on the impact of product risk and rapid development on the decision to select the most valuable strategy.

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تاریخ انتشار 1999