Software Process And Measurement Cast

Welcome to the Software Process and Measurement Cast 139! In the SPaMCAST 139  we begin an exploration of financial metrics.  The first class of financial metrics is those metrics that are used to decide which projects should be done.  I call these return metrics and they ask the questions: Should we do this project? And more broadly, are their better uses for our assets? Generally these are questions are asked at the beginning of a project but can be equally powerful at different times during the project life cycle. Return metrics are focused on the financial aspect of project but less tangible assets can be incorporated.  Attributes such as risk and strategy are examples of attributes that are often quantified and incorporated.  Examples of this class of metric include Return on Assets (ROA), Return on Investment (ROI), payback period and Internal Rate of Return (IRR). In all cases these metrics account for income, a hurdle rate (interest rate or expected rate of return) and a comparison cost either based o