Unformatted text preview: cost driver ratings will change as follows: RUSE : Nominal to Very High RELY: High to Very High DOCU: Nominal to High But it will enable them to reduce their development cost to 70% of their baseline cost in 2007 and 30% of their baseline cost in 2008 and 2009. Use the COCOMO II multipliers to determine their added investment costs to develop reusable product-line software in 2006 and 2007. Use the probability and dates of the potential future customers, and the cost savings by year for reusing the product-line software to determine their expected cost savings in current dollars in 2006, 2007, 2008, and 2009. Use an interest rate of 9% per year to computer the present value in 2006 dollars of their investment costs and benefit in cost savings from 2006 to 2009. Compute the resulting present expected value return on investment by year from 2006 to 2009, and show the results in a graph of ROI vs. Year....
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- Spring '10
- 1916, 1917, 1925, reusable components