Equations and Formulas

Question 1

SPI =

Answer 1

EV / PV

SPI > 1 then project is ahead of schedule

SPI < 1 then project is behind schedule

Question 2

Company Profit =

Answer 2

Sum of turnover - cost of sales and admin

Question 3

Company turnover =

Answer 3

sum of all money paid into the company

Question 4

PV =

Answer 4

Total budget * Planned % complete

Question 5

AC =

Answer 5

EV / PV

Hourly rate * Total hours spent

Question 6

SV =

Answer 6

EV - PV

If SV is negative then project is behind schedule

If SV is positive then project is ahead of schedule

Question 7

CV =

Answer 7

EV - AC

If CV is negative then project is over budget

If CV is positive then project is under budget

Question 8

CPI =

Answer 8

EV / AC

If CPI > 1 then project is efficient in utilizing resources

If CPI < 1 then project is not efficient in utilizing resources

Question 9

ROR =

Answer 9

( (cumulative net cash flow) / (Project life * Investment) ) * 100

Question 10

NPV (year n) =

Answer 10

(Cash flow year n) / (1 + r )^n

r = discount rate % / 100

Question 11

Total NPV =

Answer 11

sum: (NPV (year n))

Question 12

Assets =

Answer 12

Liabilities + Shareholders equity

Question 13

EV =

Answer 13

Sum : (AC * % completed)

AC/EAC = % work actually completed