Return on Software: Maximizing the Return on Your Software Investment

Chapter 23 Self-Study Questions

1.

Using the risk-free MARR, the PW(8) of Project P1 is $14,963. Using the risk-free MARR, the PW(8) of Project P2 is $14,911. The projects are within $52 of each other; that's a difference of about 0.3%. They have essentially the same PW(i) at the risk-free MARR. On the basis of PW(8) alone, they appear to be about equally desirable.

5.	Least favorable = –$274,804, Fair = $26,373, Most favorable = $208,760
6.	Equipment Cost % Change in Equipment Cost PW(8) % Change in PW(8) $7000 –30% 29,373 11% $8000 –20% 28,373 8% $9000 –10% 27,373 4% $10,000 0% 26,373 0% $11,000 10% 25,373 –4% $12,000 20% 24,373 –8% $13,000 30% 23,373 –11%