Professional Documents
Culture Documents
Acronyms
Project Selection AC Actual Cost
PV = FV / (1+r)^n BAC Budget at Completion
FV = PV * (1+r)^n BCR Benefit Cost Ratio
NPV = Formula not required. Select biggest number. CBR Cost Benefit Ratio
ROI = Formula not required. Select biggest number.
IRR = Formula not required. Select biggest number. CPI Cost Performance Index
Payback Period = Add up the projected cash inflow minus expenses CV Cost Variance
until you reach the initial investment. DUR Duration
BCR = Benefit / Cost EAC Estimate at Completion
CBR = Cost / Benefit EF Early Finish
Opportunity Cost = The value of the project not chosen.
EMV Expected Monetary Value
Communications ES Early Start
Communication Channels = n * (n-1) / 2 ETC Estimate to Complete
EV Earned Value
Probability FV Future Value
EMV = Probability * Impact in currency IRR Internal Rate of Return
Procurement LF Late Finish
PTA = ((Ceiling Price - Target Price) / Buyer's Share Ratio) + Target LS Late Start
Cost NPV Net Present Value
PERT Program Evaluation and Review Technique
Depreciation PTA Point of Total Assumption
Straight-line Depreciation:
Depr. Expense = Asset Cost / Useful Life
PV Planned Value
Depr. Rate = 100% / Useful Life PV Present Value
Double Declining Balance Method: ROI Return on Investment
Depr. Rate = 2 * (100% / Useful Life) SPI Schedule Performance Index
Depr. Expense = Depreciation Rate * Book Value at Beginning of Year SV Schedule Variance
Book Value = Book Value at beginning of year - Depreciation Expense
VAC Variance at Completion
Sum-of-Years' Digits Method:
Sum of digits = Useful Life + (Useful Life - 1) + (Useful Life - 2) + etc. Sigma / Standard Deviation
Depr. rate = fraction of years left and sum of the digits (i.e. 4/15th) ^ “To the power of” (2^3 = 2*2*2 = 8)
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