1. Net Present Value Bigger is better (NPV) 2. Present Value PV FV / (1 + r) n 3. Internal Rate of Return Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback 4. Benefit Cost Ratio VS. cost) Or PV or Revenue / PV of Cost Less is better 5. Payback Period Net Investment / Avg. Annual cash flow. Duration Estimation Methods 6. Estimated Time (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic Three points est. PERT 7. Standard Deviation (P - O) / 6 8. Variance [(P - O)/6 ]squared 9. Float or Slack LS-ES and LF-EF Cost Performance Estimation Methods 10. Cost Variance EV - AC 11. Schedule Variance EV - PV 12. Cost Perf. Index EV / AC 13. Sched. Perf. Index EV / PV BAC / CPI AC + ETC -- Initial Estimates are flawed 14. Est. At Completion (EAC) AC + BAC - EV -- Future variance are Atypical AC + (BAC - EV) / CPI -- Future Variance would be typical 15. Est. To Complete (ETC) EAC - AC 16. Percentage complete % EV/ BAC 17. Var. At Completion (VAC) BAC - EAC Values for the TCPI index of less than 1.0 is good because it 18. To Complete indicates the efficiency to complete is less than planned. Performance Index How efficient must the project team be to complete the TCPI remaining work with the remaining money? TCPI = ( BAC - EV ) / ( BAC - AC ) 19. BCWS PV Old EVA 20. BCWP EV names: 21. ACWP AC Overall Project Cost Estimation Methods 22. Order of Magnitude -25% - +75% (-50 to +100% PMBOK) Estimate 23. Budget Estimate -0.35 24. Definitive Estimate -0.15 Communication Management 25. Comm. Channels N(N -1)/2 Cost Management 26. Expected Monetary Value Probability * Impact 27. Point of Total Assumption ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target (PTA) Cost · 1ó = 68.27% 28. Sigma · 2ó = 95.45% · 3ó = 99.73% Net Income Before Taxes (NEBT) / Total Sales OR 29. Return on Sales ( ROS ) Net Income After Taxes ( NEAT ) / Total Sales NEBT / Total Assets OR 30. Return on Assets( ROA ) NEAT / Total Assets 31. Return on Investment ( NEBT / Total Investment OR ROI ) NEAT / Total Investment 32. Working Capital Current Assets - Current Liabilities 33. Discounted Cash Flow Cash Flow X Discount Factor Procurement Management Savings = Target Cost – Actual Cost
Bonus = Savings x Percentage
34. Contract related formulas Contract Cost = Bonus + Fees
Total Cost = Actual Cost + Contract Cost
Document History:
- Ver0.6, by Ahmad Al-Musallami. Updated on 2015-1-28.
Ahmad Al-Musallami, email: aalmusallami@gmail.com
PMP Formulas - Cheat Sheet v0.6.docx 2/2 1/28/2015-8:21:36 AM