Cost-Justifying Usability, 2nd Edition

NPV is positive, so i must be greater than 35%. The answer may be considered

complete at this point since the chart ends at 35%.

If you want to know the exact value of i, solve for i so that: F

2

(PVIF)

2

= 20.

4.13 SUMMARY AND RECOMMENDATIONS

As you begin to try cost-benefit analysis and business case methods:

1. Try one simple test case and then expand to more involved cases.

2. Be conservative in your analysis: Use low-end estimates of benefits and high-

end estimates of costs in business cases.

3. Update your cost-benefit data periodically and when major changes occur

in a project or new variables are uncovered (e.g., a new module will be

included that will ...