Friday, October 26, 2007

Present & Net Present Value

What are Present Value and Net-Present Value (in terms on PMI PMP)?

Present Value is:
  • future value of the money in the today's terms.
  • Formula: PV = FV / (1+r)n
    (where PV = Present Value, FV = Future Value, r = interest rate, n = number of period)

Net Present Value is:
  • the present value of the otal benefits (income or revenue)
  • allowed for a comparison of many projects and to select the best to initiate

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Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)