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TOPIC: Agile Prepcast NPV Calculation

Agile Prepcast NPV Calculation 2 months 2 weeks ago #27724

  • Tashe Chin-Fatt
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Help - in the Agile Prepcast L009.00.1 at 13:20 there is a calculation for NPV. The formula example shown on the screen is “$7000/1.05*5=5485” but the narration says “take 7000 and multiply by 1.05 times 5” which seems to contradict what is shown on the screen. When I enter either one on calculator I am unable to arrive at $5485. Please can you help me understand what the correct formula and calculation should be?

Agile Prepcast NPV Calculation 2 months 1 week ago #27746

  • Elizabeth Harrin
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Sorry, I can't do it either! Neither of my answers = 5485. Perhaps someone else will come along and give us the secret to working it out.
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Agile Prepcast NPV Calculation 2 months 1 week ago #27747

  • Tashé
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Thank you so much for your help. I’ve received a response from PM Help Desk. Problem solved:

“This is a known errata that we included in the Errata Sheet. Please see Row 18 of the sheet - MO9:

Here is the link to The Agile PrepCast - Errata Sheet - Google Sheets
docs.google.com/spreadsheets/d/17OZC7cZk...pQE8Ucg8oHNC-zzYCJJg

The Agile PrepCast - Errata Sheet is part of the appendix. It is located after the module lessons in the LMS. “

The equation should read as exponents $7000/(1.05^5)

Agile Prepcast NPV Calculation 2 months 1 week ago #27768

  • Elizabeth Harrin
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Ah, that makes more sense!
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Elizabeth Harrin
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Moderators: Yolanda MabutasJohn Paul BugarinMohammad Alharbi, PMP, PMI-ACPBilly MacDonaldWillis DonelsonChan Rampersaud

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