Economic Analysis (chapter 3)
- Net Profit = Total Income - Total Investment
- Payback Period = Breakeven Year - (Profit in year / Income in year)
- ROI (ARR) = Avg Annual Profit / Total Investment
- Present Value = Cash Flow in Year t / (1 + (discount rate / 100)) ^ t
- NPV = sum of PV's for each year
- IRR = the Discount Rate that results in a 0 NPV
Software Estimation (Chapter 5)
- Effort = (size) / (productivity)
- COCOMO -> Effort = c (size) ^ k
Risk Management (Chapter 7)
- Expected Duration (te) = (a + 4m + b) / 6
- Activity Std Deviation (S) = (b - a) / 6
- Event Std Deviation (S) = Sqrt(S1^2 + S2^2)
- Z Value = (T - te) / S