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Three-Point Estimation Calculator – Triangular & PERT Beta Distribution

Estimating Cost, Time & Schedule, Tools & Templates / By

Three-Point estimating is a common estimation technique in projects that are applying the PMI methodology. While other estimation techniques are often deemed to be more accurate, three-point estimating supplemented with the triangular or beta (PERT) distribution is useful if the experience with or benchmarks of comparable projects are not available. Use this calculator to determine …

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Internal Rate of Return (IRR) vs. ROI – What Are the Differences?

Cost-Benefit Analysis, Tools & Templates / By

If you are working on a cost-benefit analysis, you will almost inevitably come across ROI and IRR. Return on Investment (ROI) and Internal Rate of Return (IRR) are among the most popular success measures for projects and investments. They are also mentioned in the Project Management Institute’s Body of Knowledge (source: PMBOK®, 6th ed., part …

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ROI Title

Return on Investment (Single & Multi-Period ROI): Formulae, Examples, Calculator

Cost-Benefit Analysis, Tools & Templates / By

Return on Investment is one of the most common indicators used for the cost-benefit analysis. This is probably because of its simplicity and understandability of the information conveyed. In Project Management, it is a success measure suggested by the Project Management Institute (PMI; source: PMBOK®, 6th ed., part 1, ch. 1.2.6.4, p. 34). However, the …

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Project manager doing earned value analysis

Earned Value Analysis & Management (EVA/EVM) – Definition & Formulae

Earned Value Management, Project Management / By

Managing cost, performance and progress is one of the most important responsibilities of a project manager. In practice, this is usually one of the areas that receive a lot of attention by project sponsors, steering committees and other stakeholders, given that the budget is often one of the relevant constraints of a project. Despite its …

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A Project Team performs a cost benefit analysis

Cost-Benefit Analysis for Business Cases (Definition, Steps, Example)

Cost-Benefit Analysis, Project Management / By

When you prepare a project in line with PMI or other established project management methodologies, you will have to create a project business case. This business case is usually a study on the expected qualitative and financial benefits of a single project or different project options. An essential part of this process is the cost-benefit …

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Payback Period Calculator – PbP for Even & Uneven Cash Flows

Cost-Benefit Analysis, Tools & Templates / By

Do you need to calculate the number of periods an investment requires to reach the break-even point? The Payback Period (PbP or PBP) indicates the period in which a full repayment or amortization of an investment is achieved. This indicator is used not only for the assessment of project options and business cases in project …

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What Is the Benefit Cost Ratio (BCR)? Definition, Formula, Example.

Cost-Benefit Analysis / By

The Benefit Cost Ratio (BCR), also referred to as Benefit-to-Cost Ratio is an indicator that is typically used within a cost benefit analysis. In project management, the benefit cost ratio can support the cost-benefit analysis of a business case. The PMI Project Management Body of Knowledge lists the BCR under project success measures, next to …

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Net Present Value Title Pic

What Is the Net Present Value (NPV) & How Is It Calculated?

Cost-Benefit Analysis, Tools & Templates / By

When you perform a cost-benefit analysis and need to compare different investment alternatives with each other, you might consider using the net present value (NPV) as one of the profitability indicators. In project management, the NPV is commonly used and also listed in PMI’s Project Management Body of Knowledge (source: PMBOK®, 6th edition, part 1, …

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