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Return on Software: Maximizing the Return on Your Software Investment
book

Return on Software: Maximizing the Return on Your Software Investment

by Steve Tockey
August 2004
Intermediate to advanced
656 pages
15h 28m
English
Addison-Wesley Professional
Content preview from Return on Software: Maximizing the Return on Your Software Investment

Comparing Cash-Flow Streams

To compare some set of cash-flow streams, they all need to be converted into the same basis, such as present worth. After all the different proposals are expressed in the same basis for comparison, the best one will be obvious. The mechanics of the actual choice are shown in detail in the next chapter.

Keeping in mind that different proposals need to be compared on a consistent basis, always be sure to use the same interest rate, i, and planning horizon (study period), n, for each of the cash-flow streams. Planning horizons are covered in more detail in Chapter 11.

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Publisher Resources

ISBN: 0321228758Purchase book