Present Value

PV =

FV
( 1+i )t

FV: Future Value, i: Interest Rate, t: Time

PERT

( P+4 ML+O)
6

PERT =

P: Pessimistic, ML: Most Likely, O:

Optimistic

One Standard Deviation

Variance

1 SD =

2
V = ( SD )

Cost Variance

CV = EV AC

Cost Performance Index

CPI = EV / AC
SV = EV PV

Schedule Variance

( PO)
6

EV: Earned Value, AC: Actual Cost

EV: Earned Value, PV: Planned Value

Schedule Performance Index SPI = EV / PV

Estimate At Completion
EAC = BAC / CPI
Assume we will to continue to spend at
the same rate

Estimate To Complete
Assume we will to continue to spend at
the same rate

Variance At Completion
TCPI using BAC
TCPI using EAC
Number of Communication
Channels
Point of Total Assumptions

BAC: Budget At Completion

CPI: Cost Performance Index

ETC = EAC AC
ETC: Estimate To Complete

VAC = BAC - EAC

TCPI = (BAC EV)/(BAC AC)
TCPI = (BAC EV)/(EAC AC)
N. of Channels = n(n-1)/2
n: Number of people
PTA = target cost + ((ceiling
price target price)/buyers
share ratio)

EAC
Assume the remaining work will be
accomplished at the original planned
rate

EAC
Assume both the CPI & SPI will influence
the remaining work

EAC = AC + (BAC-EV)
EAC = AC + ((BAC EV)/
(SPI*CPI))

EAC
Assume plan and current spending do
not represent future

ETC
Estimate need to re-estimate

EAC = AC + bottom-up ETC

ETC = Bottom-up ETC