FORMULAS
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Benefit Cost Ratio (BCR)
Payback Period
Float or Slack
Order of Magnitude
Estimate
Budget Estimate
Definitive Estimate
Beta distribution
(3 Point estimate)
Triangular distribution
(3 Point estimate)
Standard deviation (SD)
Variance
FVFV = future value
(1+r)n r = interest rate
n = number of time periods
Bigger the better
Bigger the better
Bigger the better
Lesser the better
LS – ESLS = Late Start, ES = Early Start
or
LF – EF LF = Late Finish, EF = Early Finish
-25% - +75% (-50 to +100% PMBOK)
-10% - +25%
-5% - +10%
(P+4M+O)/6P: Pessimistic ; M: Most Likely;
O: Optimistic
(P+M+O)/3P: Pessimistic ; M: Most Likely;
O: Optimistic
(P-O)/6P: Pessimistic ; O: Optimistic
((P-O)/6 )2or (SD)2
 1 Sigma = 68.27%
2 Sigma = 95.45%
Sigma 3 Sigma = 99.73%
6 Sigma = 99.99985%

CV = EV – AC + ve = Under planned cost

Cost Variance (CV) == On planned cost
-ve= Over planned cost
Schedule SV = EV – PV +ve = Ahead of Schedule
Variance (SV) = = On schedule
-ve= Behind Schedule
Variance at VAC = BAC – EAC +ve = Under planned cost
Completion = = On planned cost
-ve = Over planned cost
CPI = EV/AC Greater than 1.0 = Under
Cost plannedcost
Performance Exactly 1.0 = On planned cost
Index (SPI) Less than 1.0 = Over planned
cost
SPI = EV/PV Greater than 1.0 = Ahead of
Schedule schedule
Performance Exactly 1.0 = On schedule
Index (SPI) Less than 1.0 = Behind
schedule
EAC = BAC/CPI If the CPI is expected to be the
samefor the remainder of the
Estimate project
AtCompletion (EAC)
 EAC = AC + BAC – EV If future work will be
accomplished
at the planned rate,

EAC = AC + Bottom-up If the initial plan is no longer

ETC valid

EAC = AC + [(BAC – EV) If both the CPI and SPI

(CPI x SPI)] influence the
remaining work
ETC = EAC – AC Assuming work is proceeding
onplan, the cost of completing
theremaining authorized work
Estimate to can be
Complete ( ETC) calculated
ETC = Re-estimate Re-estimate the remaining
work from
the bottom up.
TCPI = (BAC – EV) Greater than 1.0 = Harder to
(BAC – AC) complete
To Complete Exactly 1.0 = Same to
Performance complete
Index (TCPI) TCPI = (BAC – EV) Less than 1.0 = Easier to
(EAC –AC) complete
 n (n-1) n= no. of stakeholders
Communication Channel 2

Expected Monetary Value Probability * Impact

Point of Total Assumption

(PTA) ((Ceiling Price - Target Price)/buyer's Share Ratio) +
Target Cost