Open a new Microsoft Word document and answer the following question. Save the file on your computer with your last name in the file name. (Example: exercise_1-1_Jones.doc) Click the Choose File button to find and select your saved document. 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 $22,000 EV $20,000 AC $25,000 BAC $120,000 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 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 SPI to estimate how long it will take to finish this project. e. Sketch the earned value chart for this project, using Figure 7-6 as a guide. Estimate at completion (EAC) 120,000 100,000 Budget at completion (BAC) An EAC point above and to the right of the BAC point means the project is projected to cost more and take longer than planned 80,000 Planned value (PV) $ 60,000 Actual cost (AC) 40,000 Earned value (EV) 20,000 2 3 4 5 8 9 10 11 12 13 6 i Month - Actual cost (AC) Planned value (PV) --- Earned value (EV)