Project management: .NET interview questions – Can you explain ROI?

This is a typical management type .NET interview questions asked by the interviewer to test the candidate’s skill on management. ROI is a measurement by which we can evaluate the financial value organization will gain from the project. ROI can also be used to measure returns from IT department to a company. In this book we will see ROI from the project perspective.

Below is a generic formula for ROI: -

ROI = (Expected profit in monetary terms / expected cost of the project) * 100

In one line ROI compares how much cost you will be incurring on the project to the total profit you will get out of the project.

Let's take a simple example of a software company who is developing a simple software accounting application. The following is a rough spending and forecast revenue on the accounting application year wise.

Year 2007:- In this year they will built the accounting application. Total rough estimate is 20,000 Dollars. They will be selling per installation of the accounting software for 1500 dollars. Company estimates that only 10 installation of the accounting software will happen in the first year.

Year 2008:- In the next year i.e. 2008 we need to only spend 1000$ on the traveling charges of the installation engineer. In this year they expect 13 to 15 installations. So forecasting from minimum sales we assume that only 13 installations will happen, i.e. a net profit of approximately 20,000 dollars.

Year 2009:- From year 2009 onwards company expects to have fixed installation of 5 to 6 because of competitors coming in. So the net profit is around 10,000 dollars.

Below figure ‘ROI’ shows how the ROI calculation with respect to the yearly view. In the below figure you can see we have the statistics and a graph drawn from the statistics. The ROI increases till 20 in 2008 and then again comes down to 10 in 2009.

Figure: - ROI

Get to see one of the technical questions on .NET of OOPS topic as follows: -



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Regards,

Also see from author’s blog for management based topics on .NET interview questions

.NET interview questions: - Elaborate interfaces in details with examples?

This is the basic and all time favorite .NET interview questions asked in the start or during the interview by the interviewer. So start with the definition & use an example to express the fundamental of the topic in more detail.

In real world interface allows two disparate/ different objects to communicate with each other. For instance a human is a very different object when compared to television object. But they can still use the remote control interface to communicate with each other. Same holds true for interfaces in software, it defines a communication vocabulary between objects. Interfaces have empty methods and we can not create an object of interface.

Figure: - Television interface

The other important thing is that interface brings in lot of uniformity in the project. They define common way of communication. Let’s consider a situation where you have multiple developers working on customer and supplier classes. You want that every developer should define the method name as ‘Update’ when these classes add the data to database. Developers are human’s so some would name it as update and some as add. You can tackle this situation by defining an interface with a method called as update. Now all the classes inherit from the same interface thus making update method constant through out the classes. You can also see how the client code methods are looking consistent in naming convention thus enforcing consistent communication interfaces across all classes.

Figure: - Interface fundamentals

Also see the OOPS fundamental video on polymorphism and its types as follows: -