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| Foreword | |
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| Preface | |
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| Introduction and Foundations | |
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| Return on Software: Maximizing the Return on Your Software Investment | |
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| Software on Purpose | |
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| Waste Not, Want Not | |
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| The Primary Message | |
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| A Secondary Message: Software Engineering Versus Computer Science | |
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| An Overview of the Book | |
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| Summary | |
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| Self-Study Questions | |
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| Business on Purpose | |
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| Why Are Companies in Business, Anyway? | |
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| Business Decisions in For-Profit Organizations | |
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| Business Decisions in Not-for-Profit Organizations | |
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| Business Decisions in Your Own Personal Finances | |
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| Summary | |
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| Self-Study Questions | |
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| The Fundamental Concepts of Business Decisions | |
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| Proposals | |
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| Cash-Flow Instances and Cash-Flow Streams | |
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| Cash-Flow Diagrams | |
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| Developing Cash-Flow Streams | |
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| Summary | |
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| Self-Study Questions | |
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| The Business Decision-Making Process | |
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| Introducing the Business Decision-Making Process | |
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| Understand the Real Problem | |
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| Define the Selection Criteria | |
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| Identify All Reasonable Technically Feasible Solutions (the Proposals) | |
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| Evaluate Each Proposal Against the Selection Criteria | |
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| Select the Preferred Proposal | |
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| Monitor the Performance of the Selected Proposal | |
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| Summary | |
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| Self-Study Questions | |
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| Interest: The Time Value of Money | |
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| Time Is Money | |
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| Interest | |
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| Naming Conventions in Interest Formulas | |
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| Simple Interest | |
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| Discrete Compounding of Interest | |
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| Single-Payment Compound-Amount (F/P) | |
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| Single-Payment Present-Worth (P/F) | |
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| Equal-Payment-Series Compound-Amount (F/A) | |
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| Equal-Payment-Series Sinking-Fund (A/F) | |
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| Equal-Payment-Series Capital-Recovery (A/P) | |
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| Equal-Payment-Series Present-Worth (P/A) | |
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| Summarizing the Formulas | |
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| Some Other Handy Relationships | |
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| Summary | |
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| Self-Study Questions | |
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| Other Interest(ing) Calculations | |
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| Using Different Interest Periods and Compounding Frequencies | |
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| The Relationship Between Cash-Flow Instances and Compounding Interval | |
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| Continuous Compounding, Discrete Payment | |
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| Determining Actual Interest Rates | |
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| Paying off a Loan Through a Single, Lump-Sum Payment | |
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| Separating Interest and Principal in Loan Payments | |
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| Paying Off a Loan Early Through Higher Payments | |
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| Interest Rates Might Not Be What They Seem | |
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| Summary | |
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| Self-Study Questions | |
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| Equivalence | |
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| A Simple Comparison of Two Proposals | |
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| Simple Equivalence | |
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| Equivalence with Varying Cash-Flow Instances | |
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| Equivalence Under Different Interest Rates | |
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| Summary | |
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| Self-Study Questions | |
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| Bases for Comparison | |
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| Comparing Cash-Flow Streams | |
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| A Simple Example | |
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| Present Worth, PW(i) | |
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| Future Worth, FW(i) | |
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| Annual Equivalent, AE(i) | |
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| Internal Rate of Return, IRR | |
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| Payback Period | |
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| Project Balance, PB(i) | |
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| Capitalized Equivalent Amount, CE(i) | |
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| Summary | |
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| Self-Study Questions | |
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| Developing Mutually Exclusive Alternatives | |
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| Relationships Between Proposals | |
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| Alternatives | |
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| Developing Mutually Exclusive Alternatives | |
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| The Do Nothing Alternative | |
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| Example Proposals | |
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| Summary | |
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| Self-Study Questions | |
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| Making For-profit Business Decisions | |
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| For-Profit Decision Analysis | |
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| Minimum Attractive Rate of Return (MARR) | |
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| Before- and After-Tax MARRs | |
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| The Basic For-Profit Decision Process | |
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| Decisions Based on Total Versus Differential Cash-Flow Streams | |
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| Present Worth on Incremental Investment | |
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| IRR on Incremental Investment | |
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| Comparisons Based on Tot | |