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According to Leading Experts in Software Development, the Margin of Error

question 96

True/False

According to leading experts in software development, the margin of error when estimating project costs is 100% and the margin of error in project scheduling time is 25%.


Definitions:

Pretax Return

The income or profit earned by a business before the deduction of tax.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Annual Cash Savings

The amount of money saved over the course of a year as a result of cost-cutting measures, efficiency improvements, or other savings opportunities.

Discount Rate

The interest rate used to discount future cash flows to their present value, thereby reflecting the time value of money.

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