Week Three

Before starting of any project, cost for that particular project can be estimated roughly. To calculate this approximate cost there are two ways which are called as Historical cost, where you look at other previous similar projects & estimate the cost & the other method is "Expert judgment" where knowledge of expertise are taken into the consideration.

We have done few calculations regarding project cost calculation & learnt how to calculate the payback period & how it effects the project. When selecting a project solution we must select the project with the shortest payback time.

We have done a case study of implementing an edm for APIIT & identified what is the cost effective method (PHP or .NET) when developing the software.

Also it is identified how to proceed with projects based on NPV (Net Present value).

If :-

NPV > 0 Accept the project

NPV = 0 Accept the project

NPV < 0 Reject the project

NPV 1 < NPV 2 Then Choose NPV 2