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Estimation Methods & Financial Calculations

Horizontales
Cost of acquiring, using, and supporting the solution.
A weighted average that uses 3 estimating values.
A budgeting method to calculate the hypothetical annual yield of an investment.
The assumed interest rate used in financial calculations.
Progressive refinements of estimates as new projects phases or iterations begin.
The most accurate estimate, but most time consuming.
Verticales
Review components at a high level and estimating based on past experience.
Use of calibrated numeric model to arrive at an estimate.
Compares different solutions that may realize benefits at different rates over a different time period.
Choose solutions based upon their expected net benefit.
Uses expert judgement and history by privately querying experts for their opinions and sharing those estimates with other experts.
The estimated future value of a project in terms of present day value, taking into consideration the initial investment.