Investment analysis

The Investment Analysis component contains analytics that provide information on the likely outcome and value of a potential investment. Use Investment analysis to build financial models of expected cost and estimated benefits of your project over time. All of the financial metrics that Investment analysis provides are useful, but no single metric, by itself, will necessarily cover the whole requirement. You must analyze all the metrics and determine the ones that best meets your requirements. Estimates are uncertain entities. To express the uncertainty of your estimates, specify the values for likely; or nominal estimates with high and low bounds. These bounded estimates are used to compute the likely financial metrics for the project.

Product managers and financial executives in development projects, and portfolio management programs in software and systems organizations can use Investment analysis to arrive at better investment decisions. For example, product managers can use Investment analysis to identify various business cases for product enhancements. Investment analysis can help in driving credible financial discussion within product management, finance team and executive team to identify the assumptions of the business case and drive a more standard way of expressing the business case.

The expected costs and benefits of incomplete programs are uncertain and must be specified by using random variables. The cost and benefit streams vary within a project and also from project to project. The financial metrics of incomplete programs are calculated using the Monte Carlo simulation. Several key computations must be considered when building a financial model:
Use Investment analysis to perform these actions:
Additionally, IBM® Rational® Focal Point™ version 6.5.2 supports these actions for Investment analysis:

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