1. 

2. a)

   Cost Variance = EV AC = $100,000 - $90,000 = $10,000

   Schedule Variance = EC PV = $100,000 - $120,000 = $(20,000)

   CPI = EV/AC = $100,000/$90,000 = 1.111

   SPI = EV/PV = $100,000/$120,000 = 0.833

   b)

   SV Behind schedule

   CV > 0 & CPI > 1 => Underbudget

   c)

   EAC = BAC/CPI = $200,000/1.11 = $180,180.18

   EAC Project is performing better than planned

   d)

   SPI = 0.833

   Est. Time of Completion = 6 Months

   New SPI = 6 Months / SPI = 6/0.833 = 7.203 Months

*****PLEASE HELP WITH QUESTION 3 e)

3. Assume that you have completed three months of the project. The BAC was $200,000 for this six-month project. You can also make the following assumptions: PV = $120,000 EV = $100,000 AC = $90,000 a What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under bud get or over budget? c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? d. Use the SPI to estimate how long it will take to finish this project. e. Sketch an earned value chart using the preceding information. See Figure 7-6 as a guide