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<p>this is where we should find NPV (Net Present Value) value,</p> <p>to calculate NPV you should do the following</p> <p><img src="http://upload.wikimedia.org/math/9/0/9/9099baa737d6b5ceb3704c0ff06be954.png" alt="\\mathrm{PV} = \\sum_{n=0}^{N} \\frac{C_n}{(1+r)^{n}} =0" /></p> <p>N=number of years project will last</p> <p>r= profit rate of personal loan</p> <p>Cn= installment amount that the project buyer will pay per year</p> <p> </p> <p><strong>if the Value is >0 then you will gain profit.</strong></p>
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good analysis of theBOQ recognizes its fair profit value
Calculate the total cost of the project then add40%, this amount will cover your margin and your risks. This is the standard followed in software development project all around the world.
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