Economic Value Added, Net Present Value and Expected Present Value

Before I go into today's tip, I have some news for you - a good news and a not so good news. Which one do you want to hear first? OK, let's start with the good one first. The good news is that this is the 365th tip on this blog. Coincidently, there are 365 days in a year too. Guess what, I've managed to continue this initiative for one whole year. The credit goes to you - my readers. It's your constant encouragement which kept me going. Thank you.

Now on to the other news. I have to admit that this activity takes a lot of my time and energy, even though you may not realize. I also feel that in order to keep up with daily tips, sometime I end up posting tips that do not match the high standards I strive to achieve. I believe it's better to concentrate on quality than quantity. Therefore, I have decided to slow down and stop posting daily tips. I'll still continue to post good tips as and when I find them. I also want to encourage you readers to contribute your tips. I can certainly do with a helping hand.

Now on to today's tip -

Economic Value Added (EVA), Net Present Value (NPV) and Expected Present Value (EPV) all are concepts tested on the PMP Exam. Here's a link from Books24x7 that explains these concepts really well:

Chapter Seven - Why Finance Matters For Project Managers
The Project Manager's MBA: How to Translate Project Decisions into Business Success
by Dennis J. Cohen and Robert J. Graham
Jossey-Bass © 2001 Citation

How Projects Contribute to Shareholder Value

Note: You need to be a PMI Member to access the above link.