Budgeting for Agile Projects and Initiatives

How do we budget for Agile Projects?  This Auspicious Agile (www.auspiciousagile.com) video blog entry talks about some techniques that can be used to plan and budget for Agile projects.


Please note that in the first video example the "most likely case" is only for concept demonstration purposes.  If we used the average velocity of the team (as 50 points per sprint) to calculate the most likely case it would actually take 5 sprints (for a backlog of 250 points) to complete.