Consider the project performance report presented in figure $14\mathrm{.}1.$ What valid conclusion can you draw regarding the project cost performance as of October $31,20$XX$?$

WBS Element

Planned Value

$($PV$)$

Earned Value

$($EV$)$

Actual Cost

$($AC$)$

$2\mathrm{.}01$ Airframe

$48000$

$48000$

$50000$

$2\mathrm{.}02$ Engines

$22000$

$21000$

$23000$

$2\mathrm{.}03$ Avionics

$80000$

$60000$

$45000$

$2\mathrm{.}04$ Communications

$30000$

$30000$

$30000$

$2\mathrm{.}05$ Tech. Manuals

$42000$

$42000$

$48000$

$2\mathrm{.}06$ Spares

$40000$

$35000$

$42000$

$2\mathrm{.}07$ Training

$80000$

$80000$

$86000$

Project Total

$342000$

$316000$

$324000$

Figure $14\mathrm{.}1$ Drug Surveillance Aircraft Project $-$ Monthly Performance Report

$($October $31,20$XX$)$

Question $19$ options:

$1)$

The project is $$8,000$ over budget.

$2)$

The project is $$18,000$ over budget.

$3)$

The project is on budget.

$4)$

The project is $$26,000$ under budget.