Question

If cumulative PV = $100,000, cumulative EV = $98,000, and cumulative AC = $104,000, the project...

If cumulative PV = $100,000, cumulative EV = $98,000, and cumulative AC = $104,000, the project is:

Ahead of schedule.

Operating below project cost projections.

Likely to come in over budget at completion.

Likely to come in under budget at completion
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Answer #1

HI

We calculate Scheduling Performance Index (SPI) and Cost Performance Index(CPI) to check whether project is over or under budget or it is on time or not.

SPI = EV/PV = 98000/100000 = 0.98

If it is less than 1 that means project is behind schedule. So option 1 is wrong.

CPI = EV/AC=98000/104000 = 0.94

If it less than 1 that means project is over budget.

Hence out of the options. 3rd option is correct here.Likely to come in over budget at completion

Thanks

   

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