Advice for the Project Management Professional (PMP)

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FIGURE C-1 Financial Projections Format
6. Prepare a 10–15 minute presentation that you would give to summarize results
from the initiating phase of the project. Assume the presentation is for a management
review to decide if the project should move on to the next phase.
Part 2: Planning
Tasks
Financial Projections for New Business Venture
Assumptions/Inputs: Most likely Optimistic Pessimistic
Number of customers in month 1 150 175 120
Quarterly customer growth rate 10% 20% 5%
Monthly fee/customer $150 $175 $125
Fixed monthly salaries $9,000 $8,000 $10,000
Fixed monthly operating costs $5,000 $4,000 $6,000
Variable costs/customer/month $80 $70 $100
Number of Monthly Monthly Cumulative Monthly
Month Customers Revenues Expenses Income
1 150 $22,500 $26,000 ($3,500)
2 150 $22,500 $26,000 ($7,000)
3 150 $22,500 $26,000 ($10,500)
4 165 $24,750 $27,200 ($12,950)
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1. Develop a scope statement for the project. Use the template provided on the
companion Web site, and review the sample in the text. Remember that the
main project goals are to prepare a business plan, get financial backing, handle
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