PMBOK Math Formulas

1. PERT 2. Standard Deviation 3. Variance 4. Float or Slack 5. Cost Variance 6. Schedule Variance 7. Cost Perf. Index 8. Sched. Perf. Index (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic (P O) / 6 [(P - O)/6 ]squared LS-ES and LF-EF EV AC EV PV EV / AC EV / PV BAC / CPI, AC + ETC Initial Estimates are flawed 9. Est. At Completion (EAC) AC + BAC EV Future variance are Atypical AC + (BAC EV) / CPI Future Variance would be typical 10. Est. To Complete Percentage complete 11. Var. At Completion EAC AC EV/ BAC BAC EAC Values for the TCPI index of less then 1.0 is good because it indicates the efficiency to complete is less than planned. How efficient must the project team be to complete the remaining work with the remaining money? ( BAC EV ) / ( BAC AC ) 13. Net Present Value 14. Present Value PV 15. Internal Rate of Return Bigger is better (NPV) FV / (1 + r)^n Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback VS. cost) Or PV or Revenue / PV of Cost Less is better 17. Payback Period Net Investment / Avg. Annual cash flow.

12. To Complete Performance Index (TCPI)

16. Benefit Cost Ratio

18. BCWS 19. BCWP 20. ACWP 21. Order of Magnitude Estimate 22. Budget Estimate 23. Definitive Estimate 24. Comm. Channels 25. Expected Monetary Value 26. Point of Total Assumption (PTA)

PV EV AC -25% +75% (-50 to +100% PMBOK) -10% +25% -5% +10% N(N -1)/2 Probability * Impact ((Ceiling Price Target Price)/buyers Share Ratio) + Target Cost

Sigma

1 = 68.27% 2 = 95.45% 3 = 99.73% 6 = 99.99985%

Net Income Before Taxes (NEBT) / Total Sales OR Return on Sales ( ROS ) Net Income After Taxes ( NEAT ) / Total Sales NEBT / Total Assets OR Return on Assets( ROA ) NEAT / Total Assets NEBT / Total Investment OR Return on Investment ( ROI ) Working Capital Discounted Cash Flow NEAT / Total Investment Current Assets Current Liabilities Cash Flow X Discount Factor Savings = Target Cost Actual Cost Bonus = Savings x Percentage Contract related formulas Contract Cost = Bonus + Fees Total Cost = Actual Cost + Contract Cost