[PMP] 7, Project Charter and Business Case

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Business Case justifies the 'why' of a project with financial metrics, while the Project Charter authorizes the 'what' and 'who'. - For the PMP exam, Net Present Value (NPV) is the most critical metric for project selection; always favor the project with the highest positive NPV. - The Internal Rate of Return (IRR) is the discount rate at which a project's net present value becomes zero; a higher IRR is more favorable. - A common exam trap is confusing assumptions (factors believed to be true without proof) with constraints (factors that are known limitations, like budget or schedule). - The Project Charter is the formal document that provides the project manager with the authority to apply organizational resources to project activities. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep