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Cost Of Delay
Cost of Delay is "a way of communicating the impact of time on the outcomes we hope to achieve". More formally, it is the partial derivative of the ''total expected value'' with respect to ''time''. Cost of Delay combines an understanding of value with how that value leaks away over time. It is a tactic that helps communicate and prioritize development decisions by calculating the impact of time on value creation & capture. More simply, it is the answer to the question: "What would it cost us if this was delayed by 1 month?". Or, alternatively, "what would it be worth to us if we could get this 1 month earlier?" Cost of Delay has the units of $/time. The Delay Cost incurred (as a result of a delay) is found by integrating Cost of Delay over a specific time period. Cost of Delay in Product Development Cost of Delay is described by Don Reinertsen as being the "one thing" to quantify. "We need Cost of Delay to evaluate the cost of queues, the value of excess capacity, the benefit of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Of Delay
Cost of Delay is "a way of communicating the impact of time on the outcomes we hope to achieve". More formally, it is the partial derivative of the ''total expected value'' with respect to ''time''. Cost of Delay combines an understanding of value with how that value leaks away over time. It is a tactic that helps communicate and prioritize development decisions by calculating the impact of time on value creation & capture. More simply, it is the answer to the question: "What would it cost us if this was delayed by 1 month?". Or, alternatively, "what would it be worth to us if we could get this 1 month earlier?" Cost of Delay has the units of $/time. The Delay Cost incurred (as a result of a delay) is found by integrating Cost of Delay over a specific time period. Cost of Delay in Product Development Cost of Delay is described by Don Reinertsen as being the "one thing" to quantify. "We need Cost of Delay to evaluate the cost of queues, the value of excess capacity, the benefit of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitability asse ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interest
In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs. For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Interest Rate
The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate. If, for example, an investor were able to lock in a 5% interest rate for the coming year and anticipated a 2% rise in prices, they would expect to earn a real interest rate of 3%. The expected real interest rate is not a single number, as different investors have different expectations of future inflation. Since the inflation rate over the course of a loan is not known initially, volatility in inflation represents a risk to both the lender and the borrower. In the case of contracts stated in terms of the nominal interest rate, the real interest rate is known only at the end of the period of the loan, based on the realized inflation rate; this is called the ex-post real interes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Single Deposit
Single deposit is one-time lump sum investment. The Investment is made at the start of the period; grows over the period and matures at the end of the period. Examples of a single deposit are certificates of deposit or Fixed Deposits. Real World Example Ericka has US$5,000.00 for her daughter's wedding. She may need the money after 4 years. She is planning to invest the money for the period. Her bank offers her an interest rate of 3.50% per annum compounded annually on a new CD (certificate of deposit) that she opens. Input Returns See also * Rate of return on investment * Finance * Interest In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct ... * Periodic deposit References Investment {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Periodic Deposit
Periodic deposit is an investment made in form of equal deposits over a regular time period. Each deposit recurs after a time interval. Such an investment is made to achieve a pre-planned financial objective and/or when the available capital to invest is limited. In simpler words, periodic deposit is a deposit recurring on a periodic basis. Investments are made over the period, grow over the period and mature at the end of the period. Real world example John is planning investments for his retirement. He has decided to invest an amount of US$150.00 per pay check over a period of 30 years. He receives his pay check twice every month. The interest rate expected is 10% per annum with quarterly compounding. Investment ''*All deposits made at start of the period'' Returns See also * Finance * Interest * Rate of return on investment * Real interest rate * Single deposit Single deposit is one-time lump sum investment. The Investment is made at the start of the period; grows ov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
