Formulas Flashcards
(17 cards)
What is the formula for NPV
NPV=FV/(1+r)^n
FV= Future Value
r = interest rate
n = number of time periods
Eg:
FV=$500,000
r= .08
n= 5 years
NPV=$500,000 / (1+.08)^5
NPV=$500,000 / (1+.08)x(1+.08)x(1+.08)x(1+.08)x(1+.08)
NPV=$500,00/1.469
NPV=$340,292
What is the 3 Point Estimate Formula when estimating work?
3PE = (O+P+ML)/3
O=Optimistic
P= Pessimistic
ML = Most likely
Eg:
3PE=(O+P+ML)/3
3PE=(24+80+40)/3
3PE=144/3
3PE=48 Hrs
What does PERT stand for? What is the PERT formula when estimating work?
Program Evaluation and Review Tecnique
PERT= (O+P+4ML)/6
O=Optimistic
P= Pessimistic
ML = Most likely
Eg:
PERT=(O+P+ML4)/6
PERT=(24+80+4(40))/6
PERT=(24+80+160)/6
PERT=44 Hrs
What is the Standard Deviation of PERT Estimate when estimating work and how is it used?
SD=(P-O)/6
O=Optimistic
P= Pessimistic
Used when you want to find a range of + or - of a given PERT estimate.
Eg:
SD=(P-O)/6
SD=(80-24)/6
SD=9.3 hours + or -
How do you calculate the duration of a task?
D=Effort/Productivity/Working Time
Eg:
Task =80 hours with 1 person working 100% of their time for an 8 hour work day:
D=80 hrs / 1 / 8
D=10 days
Eg:
Task =80 hours with 2 people working 100% of their time for an 8 hour work day:
D=80 hrs / 2 / 8
D=5 days
What is the EV formula for % Work Complete?
EV/BAC
EV = Earned Value
BAC=Budget at Completion
Eg:
% Complete = 375k/500k
% Complete = 75%
What is the formula for % Spent?
% Spent = AC/BAC
AC=Actual Cost
BAC=Budget at Completion
Eg:
% Spent = 350k/500k
% Spent = 70%
What is the formula for Cost Variance?
CV = EV-AC
EV=Earned Value
AC=Actual Cost
Eg:
CV=375k-350k
CV=25k
+=Under budget
-=Over budget
What is the Formula for Schedule Variance?
How much value has been earned vs how much was planned to be spent.
SV=EV-PV
EV=Earned Value
PV=Planned Value
Eg:
SV=375k-325k
SV=50k
+=Ahead of schedule
-=Behind schedule
What is the formula for Cost Performance Index?
CPI=EV/AC
EV=Earned Value
AC=Actual Cost
Eg:
CPI=375k/350k
CPI=1.07
<1 =Unfavourable trend
>1 =Favourable trend
What is the formula for Schedule Performance Index?
SPI=EV/PV
EV=Earned Value
PV=Planned Value
Eg:
SPI=375k/325k
SPI=1.15
The project is 15% ahead of schedule.
What is the formula for Estimate At Completion if the trend is NOT expected to continue?
The current cost & schedule performance are not a factor to the EAC.
EAC=AC+(BAC-EV)
AC=Actual Cost
BAC=Budget at Completion
EV=Earned Value
Eg:
EAC=350k + (500k-375k)
EAC=350k + 125k
EAC=475k
The projected cost of the project at completion is 475k
What is the formula for Estimate At Completion if the trend IS expected to continue performing at the same CPI?
EAC=BAC/CPI
BAC=Budget at Completion
CPI=Cost Performance Index
EAC=500K/1.07
EAC=467k
The projected cost of the project at completion is 467k
What is the formula for Estimate At Completion if the schedule and cost trend IS expected to continue?
EAC=AC+[(BAC-EV)/(CPIxSPI)]
AC=Actual Cost
BAC=Budget at Completion
EV=Earned Value
CPI=Cost Performance
Index
SPI=Schedule Performance Index
Eg:
EAC=350k+[(500k-375k)/(1.07/1.15)]
EAC=350k+101k
EAC=451k
The projected cost of the project at completion is 451k
What is the formula for Variance at Completion?
VAC=BAC-EAC (EAC option1-3)
VAC=500K-467k
VAC=33k
+=Under budget
-=Over budget
What is the formula for Estimate to Completion?
How much money will be needed to complete the project based on an EAC.
ETC=EAC-AC
Eg:
ETC=467k-350k
ETC=117k
The project will need 117k to be completed if (EAC option 1-3 for context).
What is the formula for Time To Complete Performance Index?
Work Remaining/Money Remaining
TCPI=Work Remaining/Money Remaining
TCPI=(BAC-EV)/(BAC-AC)
BAC=Budget At Completion
EV=Earned Value
AC=Actual Cost
Eg:
TCPI=(500k/375k)/(500k-350k)
TCPI=125k/150k
TCPI=0.83
The project will only need to earn .83 for every $1 spent for the remainder of the project to land within the budget.
