is on our web site.Flexibility
Financial analysis methodsHighly adaptive to change
Business cases often combine narrative justification with investment appraisal. Common methods include:Change-resistant
- Return on investment (ROI)Customer Involvement: a simple ratio comparing net benefits to costs. It is easy to communicate, but can hide timing and risk.Continuous collaboration
- Payback periodPrimarily at start/end: how long it takes for cumulative benefits to repay the initial investment. Useful for liquidity constraints, but ignores value after payback and time value of money.Risk management
- Net present value (NPV)Early and ongoing detection: discounts future cash flows back to today using a discount rate, reflecting the time value of money. A positive NPV indicates value creation under the model assumptions.Late-stage identification
- Internal rate of return (IRR)Delivery: the discount rate at which NPV equals zero. It supports comparison between investments, but can be misleading with non-standard cash flows.Work delivered frequently
See also:
Agile methodology
- Learn more:
- Scrum
- ,
- Kanban in project management
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