Mastering Project Management Formulas

What is the formula for calculating Earned Value (EV)?

• EV = Total Project Budget - % of Completed Work

• EV = % of Completed Work / Total Project Budget

• EV = % of Completed Work x Total Project Budget

• EV = % of Completed Work + Total Project Budget

How do you calculate Cost Performance Index (CPI)?

• CPI = AC / EV

• CPI = EV / AC

• CPI = EV + AC

• CPI = PV / AC

What does the Critical Path Method (CPM) help determine in a project?

• The total cost of the project.

• The longest sequence of dependent tasks that determines the shortest project duration.

• The number of resources required for the project.

• The best time to start the project.

How is the total float calculated in CPM?

• Total Float = LS - ES or Total Float = LF - EF.

• Total Float = ES - LS

• Total Float = LS + EF

• Total Float = EF - LF

What is the formula for calculating Net Present Value (NPV)?

• NPV = Σ (Cash Flow_t / (1 + r)^t) - Initial Investment

• NPV = Σ (Cash Flow_t * r^t) + Initial Investment

• NPV = Cash Flow_t * (1 + r)^t - Initial Investment

• NPV = Σ (Cash Flow_t / r) - Initial Investment

How do you determine the Benefit-Cost Ratio (BCR)?

• BCR = Total Costs / Total Benefits

• BCR = Total Benefits - Total Costs

• BCR = Total Benefits + Total Costs

• BCR = Total Benefits / Total Costs

What is the purpose of a risk matrix in risk management?

• To assess and prioritize risks based on likelihood and impact.

• To eliminate all risks completely.

• To document past risks without analysis.

• To create a financial report for stakeholders.

How do you calculate the expected monetary value (EMV) of a risk?

• EMV = Σ (Probability of Outcome × Monetary Value of Outcome)

• EMV = Average of all possible outcomes

• EMV = Maximum Monetary Value - Minimum Monetary Value

• EMV = Probability of Outcome + Monetary Value of Outcome

What is the formula for calculating the scope baseline?

• Scope Baseline = Project Charter + Risk Register + Stakeholder Register

• Scope Baseline = Project Schedule + Cost Baseline + Quality Management Plan

• Scope Baseline = Project Scope Statement + Gantt Chart + Communication Plan

• Scope Baseline = Project Scope Statement + WBS + WBS Dictionary

How do you determine the percentage of project completion?

• (Number of Ongoing Tasks / Total Number of Tasks) * 100

• (Total Number of Tasks - Number of Completed Tasks) * 100

• (Number of Tasks with Issues / Total Number of Tasks) * 100

• (Number of Completed Tasks / Total Number of Tasks) * 100