Given the following information for a one-year project, answer the following questions. Remember the following terms; planned value (PV), earned value (EV), actual cost (AC), and budget at completion (BAC).

PV = $44,000

EV = $53,000

AC = $45,000

BAC = $140,000

a). Use the formulas provided in Table 1, to determine the projects cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

Table 1: Earned Value Formulas

Term Formula

Earned value EV = PV to date X% complete

Cost variance CV = EV AC

Schedule variance SV = EV PV

Cost performance index CPI = EV / AC

Schedule performance index SPI = EV / PV

Estimate at completion (EAC) EAC = BAC / CPI

Estimated time to complete

Original time estimate / SPI

b). How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget 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 schedule performance index (SPI) to estimate how long it will take to finish this project