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In This Chapter
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Economics
- Introduction
- What Is Software Engineering?
- Elements of Software Engineering Economics
- Proposals
- Cash Flow Instances and Cash Flow Streams
- Cash Flow Diagrams
- Economic Decision-Making Process
- Understand the real problem
- Define the selection criteria
- Identify all reasonable technically feasible solutions (the proposals)
- Evaluate each proposal against the selection criteria
- Select the preferred proposal
- Monitor the performance of the selected proposal
- Time-Value of Money
- Simple interest
- Compound interest
- Single-payment compound-amount (F/P)
- Single-payment present-worth (P/F)
- Equal-payment-series compound-amount (F/A)
- Equal-payment-series sinking-fund (A/F)
- Equal-payment-series capital-recovery (A/P)
- Equal-payment-series present-worth (P/A)
- Equivalence
- Bases for Comparison
- Mutually Exclusive Alternatives
- For-Profit Decision Analysis
- Non-Profit Decision Analysis
- Engineering Economics Topics Not Covered Here
- Conclusions
- References
Abstract
Software engineering economics is an often ignored, but critical element of the discipline of software engineering. This entry starts by describing how and why software engineering economics is a key element of software engineering. This entry then provides a brief survey and overview of the primary methods and techniques of software engineering economics.
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