Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value. EV is the earned value, AC is the actual cost, and BAC is the budget at completion.

PV = $23,000

EV = $20,000

AC = $25,000

BAC = $120,000

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a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? (4 marks)

b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? (2 marks)

c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? (2 marks)

d. Use the schedule performance index (SPI) to estimate how long it will take to finish this project (New duration). (2 marks)

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Equations that will help you:

CV = EV - AC

CPI = EV/AC

SV = EV - PV

SPI = EV/PV

EAC = BAC/CPI

New duration = Old duration/ SPI