PMP Maths Flash Card

8/12/2019 PMP Maths Flash Card

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PMP Math- Flash Card

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Project Selection

Earned Value

1

2

Topics


Time Management

Communication

Procurement

3

4

5

2


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Project Selection

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&'()e tod'* o+ the +)t)re c',h +(ow - ,o i+ the mone* i,coming '+ter *e'r, we need to di,co)nt it to c'(c)('te the

'()e o+ tod'*.

re,ent &'()e F& / 1 3 i45 n

Present Value

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i di,co)nt r'te

n period

F& F)t)re C',h In+(ow/ O)t+(ow


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Net Present Value (NPV

N& i, ' me',)re o+ how m)ch mone* ' pro6ect c'nbe e7pected to ret)rn in tod'*8, pre,ent '()e4.

It8, ' 9)m o+ In+(ow 'nd o)t+(ow in pre,ent '()e termme'n di,co)nted b',ed on d)r'tion 4



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N& 9)mF& / 1 3 i45 n4

i di,co)nt r'te

n period

Net Present Value (NPV

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In+(ow repre,ented with 3 / O)t+(ow with Neg'tie


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Net Present Value

Outflow 1000USD (Now)

Outflow 1000USD (Year 1)

Inflow 4000 USD(Year 2)

Discount Rate = 10%


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NPV (Net Present Value

"ime '()e o+ mone* t'Aen c're.one* *o) get in *e'r, i,n8t worth



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!"ic" Project to Select#

ro6ect # h', ' d)r'tion o+ *e'r, 'nd 'n N& o+ D0-000-ro6ect B h', ' d)r'tion o+ % *e'r, 'nd 'n N& o+ D-000-ro6ect C h', ' d)r'tion o+ ; *e'r, 'nd 'n N& o+ D;2-000 Ehichpro6ect wi(( *o) ,e(ect


"ime '()e o+ mone* '(re'd* con,idered in N& ,o*e'r, doe,n8t m'tterGemember B>"B> ? Project C


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IRR is a *easure of +ow ,uic-l. t+e *one.

in/este in a roect will increase in /alue3 Its

a rate of return w+ic+ calculate 5ase oninflow an outflow of t+e roect3

$nternal %ate o& %eturn ($%%



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H 6+e for*ula is sa*e li-e NP7 t+e ifference is now we nee tocalculate rate (i) w+ic+ e,uali8es t+e cas+ inflow an outflow

0 = Su*(9 " (1 # i)$ n)

i = IRR this is what we calculate

n = erio

$%% ($nternal %ate o& %eturn



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$nternal %ate o& %eturn ($%%

Outflow 1000USD (Now)

Outflow 1000USD (Year 1)

Inflow 4000 USD(Year 2)

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0 = !1000!1000 "((1#i"100)$1)# 4000"((1#i"100)$2)

If we ut i = : 7 it *a-es t+e e,uation 5alance7 so

in t+is case IRR = :%


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$%%

Bigger i, better = B'd' >'i "o Beht'r>'i ? B>"B>



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$%% ($nternal %ate o& %eturn

Ehich ro6ect *o) wi(( ,e(ectProject Name $%% $n'estment

o(d ;J -00-000


Project old B>"B> 4

. - -

('tin)m . J 2-000-000

Copper %J 1-000-000


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NPV ) $%%

N& repre,ent, the

pro6ect bene+it in'b,o()te term (iAe

100-000 K9

IGG repre,ent the '()e

in proportion (iAe 10J -;J

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Ee c'n get contr'dictor* recommend'tion,

+rom N& 'nd IGG b)t in e7'm *o) do not get,)ch L)e,tion,


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*ene&it Cost %atio

one* pro6ect going to m'Ae er,),it, co,t.

2012 iZenBridge | http://www.izenbridge.com/ | CONFI!N"I#$1ow m'n* comm. Ch'nne(,

H N ; 34- ;R/2 1



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H !.g.

H h'ing te'm member,. I+ n)mber o+ te'm member,red)ced to 2- how m'n* comm)nic'tion ch'nne(, (e+t

H O(d = N ; 34- ;R/2 1

H New ? N%- %R2/2 %



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H !.g.

H h'ing te'm member,. I+ n)mber o+ te'm member,red)ced to 2- how m'n* comm)nic'tion ch'nne(,

red)ced

H O(d: N ; 34- ;R/2 1



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Procurement Management



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H Ge+er, to 'mo)nt 'boe which ,e((er be'r, '(( the (o,, o+co,t oerr)n

H Co,t goe, 'boe "# 're ',,)med d)e to

mi,m'n'gement 'nd there+ore entit(ed to ,e((er



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H "# "'rget Co,t 3 Cei(ing rice ="'rget rice4/B)*er8,,h're r'tio



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H 'Ae=or=B)* deci,ion '(,o c'((ed the o)t,o)rcingdeci,ion4 i, ' 6)dgment m'de b* m'n'gement whether tom'Ae ' component intern'((* or b)* it +rom the m'rAet.


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PMP Maths Flash Card