Benefit-Cost Analysis for Multiple Proposals

Just as was described in Chapter 9, there may or may not be dependencies between different BC(i) proposals. It may also be possible to carry out more than one of these proposals at a time. So, exactly as was described in Chapter 9, use all the proposals to build up the set of mutually exclusive alternatives. Dependencies, exclusivities, budget constraints, etc. all need to be factored in. The benefits for any alternative will be the sum of the benefits for all the proposals in that alternative. Each alternative's cost will be the sum of the costs for all proposals in that alternative. Keep in mind that all the benefits and costs need to be in the same terms, such as PW(i), FW(i), AE(i), . . ..

ANALYZING ...

Get Return on Software: Maximizing the Return on Your Software Investment now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.