Project Management Formulas
Purpose 
Formula 
Net Present Value 
PV = FV/(1+r)^{n} 
Internal Rate of Return 
Discount rate at which net present value = 0 
Expected Monetary Value (EMV) 
Σ products of probabilities & corresponding values 
Incentive fee 
The target fee adjusted by the seller’s share ration as a percentage of the cost variance from the target cost. 
PERT 
Use Beta distribution formulas 
Triangular Distribution 
Mean = (a+m+b) / 3 
Variance 
v = (a^{2}+m^{2}+b^{2}amabmb) / 18 
Standard Deviation 
σ = √variance 
Beta Distribution 
Mean = (a+4m+b) / 6 
Variance 
v = [(ba)/6]^{2} 
Standard Deviation 
σ = (ba)/6 = √variance 
Total Triangular & Beta Mean Variance Standard Diviation 
Σ [Individual means] v = Σ [Individual variance] σ = √Total variance 
Communication paths 
n(n1)/2 
Earned value 
CV = EV – AC 
SV = EV  PV 

CPI = EV / AC 

SPI = EV / PV 

ETC = EAC – AC 

VAC = BAC – EAC 

TCPI = (BAC  EV) / (BAC  AC) 

EAC Do not extrapolate variances 
BAC + AC – EV 
EAC Ignore existing budget 
AC + ETC 
EAC Variances will continue 
BAC / CPI 
EAC Worst case 
BAC/(CPI * SPI) 
EAC PMBOK formula 
AC + (BAC  EV) /CPI 
Point of total assumption 