Professional Documents
Culture Documents
Praizion Media PMP Exam Student'S Cheat Sheet
Praizion Media PMP Exam Student'S Cheat Sheet
(NOT TO BE REDISTRIBUTED.)
FV = PV (1 + i)n
PV = FV / (1 + i)n
Where: FV = Future Value or the net cash flow at time “n”, PV = Present Value
i = interest rate also called rate of return; n = number of time periods or time of the cash flow
Net Present Value (NPV): NPV = PVbenefits – PVcosts or NPV = PVCash Inflows – PVCashOutflows
NPV>0 accept the project, NPV<0 reject the project, NPV=0 (neutrality)
Payback Period: Shorter Payback Period: select project, Longer Payback Period: reject project
Free Slack: The amount of time an activity can be delayed before delaying the start of a successor activity.
Free Slack = ES of successor - EF of predecessor
Project Slack: The amount of time a project can be delayed without affecting the required due date of the project.
Formulas:
EV = PV x %Complete Use when BAC is given
Use when the PV at the end of the project is given. Multiply
by the %Complete for the same time period; the resulting EV
will be for the same time period also
PV = Planned Value, BAC = Budget at Completion %Complete is the percentage of work complete as of the time
period in question. BAC = Total PV or BAC = Total BCWS
Estimate at Completion (EAC) – Note where cumulative values (CPIc and SPIc are used)
EAC formula: Use when:
EAC = AC + ETC AC and ETC are available
EAC = AC + BAC – EV Current variances are not typical
EAC = AC + [ (BAC – EV) ÷ (CPI x SPI )] Current variances are typical; considering both CPIc and SPIc factors.
EAC = BAC ÷ CPIc Current CPIc is expected to remain the same in future