4 Profitability and Agile financial performance
In order to appreciate the financial contribution of Agile it is necessary to understand how costs are accounted for, the meaning of ‘profit’ and the significance of the timing of cash flows. Only then is it possible to grasp how the combination of the prioritization of user stories by value, along with their iterative development and incremental delivery, reshape the cash flow structure of a project, thereby positively influencing the bottom line. Key to this recognition is the fact that money today is worth more than the promise of the same amount of money in the future. This requires that anticipated cash flows are discounted appropriately, demonstrating the value that Agile projects add to ...
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