Title COst Variance

What Is Cost Variance (CV)? Definition, Formula, Example, Calculator

You probably came across the cost variance (CV) when you had been reading about earned value management and variance analysis. Whether you are controlling the cost of your project or preparing for the PMP exam – being familiar with the CV is essential to master project cost management. This article introduces the concept of cost …

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Internal Rate of Return (IRR) Calculator

IRR Calculator: Internal Rate of Return (IRR) of Projects

The Internal Rate of Return is one of the most common success measures of projects and investments. It is a profitability metric that can be used to assess and compare different project options even if their investment amounts, timeline and cash flow characteristics differ. In project management, it is often used for cost-benefit analyses as …

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Title Three-Point Estimation and PERT

Three-Point Estimating and PERT Distribution (Cost & Time Estimation)

Estimating time, efforts and cost is one of the most critical parts of project management. This is because of the fundamental importance of these estimates for the entire project planning and, in particular, the scope, schedule and cost baseline. One of the estimation techniques suggested in the PMI Project Management Body of Knowledge (PMBOK 6th …

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Three-Point Estimation Calculator – Triangular & PERT Beta Distribution

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?

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 edition, part …

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ROI Title

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

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 edition, 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

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)

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

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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