New Horizons New Horizons Project Management Academy Project Management Academy Six Sigma Online Six Sigma Online TCM Security TCM Security TRACOM TRACOM Velopi Velopi Watermark Learning Watermark Learning
Educate 360
Educate 360 Educate 360
Project Management Academy

Project Selection Method Formulas

Return on Investment
PMP Formulas

PMP Exam Prep: Return on Investment (ROI)

Most organizations do not want to waste money. The Return on Investment (ROI) tool is a means to compare profits to costs to determine if funds were used effectively. ROI can be used as a predictive tool with expected profits and costs to inform future decisions, or, as an evaluation tool using known profit and

PMP Formulas

Net Present Value Formula PMP®

When selecting a project to pursue, it’s crucial to consider how inflation and deflation will impact your project’s future value. For example, there is a difference in the purchasing power of $1,000 today and the same amount five years in the future. The concept of Net Present Value helps PMP® credential holders account for this

PMP Formulas

Understanding Internal Rate of Return (IRR) for the PMP® Exam

Every project decision represents a financial crossroads. When executives ask “Should we invest in this project?” they’re really asking “Will this generate better returns than our alternatives?” This is where Internal Rate of Return (IRR) becomes your most powerful weapon in project selection. IRR represents the discount rate at which a project’s net present value

Scroll to Top