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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.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.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 | |