PMP® Certification: PMP® Project Selection Methods - 1 PDU

Before the project is chartered, some analysis should be done to decide whether to start or not to start the project. These analyses are called the Project Selection Methods, which we are going to explain in this section.

Before starting the project, some analysis should be conducted to decide whether or not to start the project. Sometimes, not starting a project, may be a better option than starting it. There are some methods help us to make the right decision.

I.R.R. is the abbreviation of the Internal Rate of Return. Internal Rate of Return calculation is very complicated, but the good news is you don’t need to know how to calculate it for the exam.

The Payback Period is the time required to repay the investment with net cash outflow generated after the project is closed.

Another Economic Model for project selection is the Cost-Benefit analysis. In this method, the cost of the project is compared with the benefits of the project.

Before starting the present value lecture, let’s understand what the Present Value means.

Next and the last economic model is the Net Present Value.

Up to now, we have learned some of the Project Selection Methods. Now, let’s briefly talk about how to select the project; this is, we will learn which project is the best project according to the results we get from the Economic Models.

In this lecture, I will explain some of the accounting terms you need to know for the exam.

This mini-quiz will help you to review what you have learned in this part of the course. Questions are kind of easy, but by solving them, you will be reinforcing what you have learned up to now.

REALISTIC EXAM QUESTIONS in Video Format

In this lecture, we will talk about what is important and what is not.

Bonus lecture.