Return on Software: Maximizing the Return on Your Software Investment

Chapter 24 Self-Study Questions

1.

(0.20 * –$2166) + (0.55 * $2008) + (0.25 * $6124) = –$433 + $1104 + $1531 = $2202

3.

The PW(14) of the project given the law is repealed in any year Y is as follows: Number of Years Until Law Is Repealed Probability of Repeal That Year PW(i) if Repealed That Year PW(i) * Probability 1 0.1 –$32,556 –$3256 2 0.2 –$17,066 –$3413 3 0.2 –$3568 –$714 4 0.3 $8274 $2482 5 0.1 $18,662 $1866 6 0.1 $27,774 $2777     Total –$258 The expected value of the project is –$258; the company should not invest in the project.

6.	Slightly more than 12 calendar months
8.	19.3 calendar months
9.	About 40 staff months
13.
14.	The expected value of the root node is $66k; this ...