Complete inf3708 - Study guides, Revision notes & Summaries

This summary contains in depth concepts, explanations and examples which will not only allow you to reduce the amount of time you have to study, but will also assist you with getting a distinction for this module. You won’t even have to open your prescribe book! The following concepts are covered in this summary: COCOMO estimation model, CPD Network diagrams, PERT network, Bar Charts, resource table, project estimation, project evaluation calculation and theory. In addition, this summary inclu...

Cost-benefit evaluation techniques Formula for ROI Example of using ROI ROI for a project with net profit of R50k over a 5 year period Average annual profit: 50 000 / 5 = 10 000 Annual profit = R10k and a total investment of R100k ROI = 10 000 / 100 000 *100 = 10%   Discount factor t = the number of years into the future that the cash flow occurs r = the discount rate (annual rate by which future earnings are discounted) PV: Present value of a future cash flow NPV: Net present ...