Making Money
Assessing the economic efficiency of project implementation automation system is an essential part of its feasibility. In general, there are three main groups of methods that allow determine the effect of introduction of automation systems: financial (they are also quantitative), qualitative and probabilistic. Each method, financial or non-financial has its disadvantages. Further details can be found at Peet’s Coffee, an internet resource. It is clear that automation – fine process, and not in every business process can evaluate the financial component of the effect of it. More info: Randall Mays. Financial methods for estimating the effectiveness of investments in IT-projects are presented in three groups: 1.NPV (Net Present Value) – the net present value or net present value. Shows the future value of an investment in the project and benefit from it in relation to today’s money.
That is, leads all cash flows to date, as is clear by the fact that the dollar received today, and the dollar received a year later, the reality is quite different values. The value of money changes over time. 2.IRR (Internal Rate of Return) – the internal rate of return (profitability) of the project. Defines interest rate of the project, and then compares that rate with the rate of return on risk-based. This is an absolute indicator, which can not only make decisions on some specific projects, but also compare projects with a completely different level of funding, with vastly different budgets. 3.Payback period – the payback period of investment. In fact, this analysis of the refund based on the company adopted a maximum payback period investments.
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