Reverse Formulas and Calculations Flashcards
Cost of Project or Investment / Annual Cash Inflows
Project Payback Period
Predicts likelihood of reaching EAC
Formula: (BAC-EV)/(EAC-AC)
Greater than 1 – harder to complete and meet EAC
Less than 1 – easier to complete and meet EAC
TCPI (Utilizing EAC)
Predicts likelihood of reaching BAC
Formula: (BAC-EV)/(BAC-AC)
Greater than 1 – harder to complete and meet BAC
Less than 1 – easier to complete and meet BAC
TCPI (Utilizing BAC)
Predict how much more the remainder of the project will cost
Formula: EAC-AC
Estimate to Complete
Project of being over or under budget based on current performance
Formula: BAC-EAC
(Positive = under budget, Negative = over budget)
Variance at Completion (VAC)
Shows overall schedule adherence
Formula: EV/PV
(Greater than 1 = ahead of schedule, Less than 1 = behind schedule)
Schedule Performance Index (SPI)
N(N-1)/2 N=Number of Stakeholders
Communication Channel
What the project should be worth
Planned Value (PV)
The difference between the earned value (EV) and planned value (PV)
Formula: EV-PV
(Positive = ahead of schedule, Negative = behind schedule)
Schedule Variance (SV)
What the project is worth
Formula: % Complete x BAC
Earned Value (EV)
Forecasts final project costs based on current performance
Standard Formula: BAC/CPI
Future Work at Planned Cost Formula: AC + BAC - EV
Initial Costs Estimate Flawed: AC + Estimate for remainer of project
CPI and SPI affect reamainder of project formula: AC + [BAC-EV/CPIxSPI)]
Estimate at Completion (EAC)
What the project budget is
Budget at Completion (BAC)
The different between the earned value (EV) and the actual value (AV) cost
Formula: EV-AC
(Positive = under budget, Negative = over budget)
Cost Variance (CV)
What the project has spent so far
Actual Cost (AC)
Shows overall cost efficiency on the project
Formula: EV/AC
(Greater than 1 = under budget, Less than 1 = over budget)
Cost Performance Index (CPI)
