Question 1

Earned Value Management

Question 1 (a) --- Project 1 - 25 marks

You are managing a project that is scheduled to take 12 months to complete and has a budgeted actual cost (BAC) of $1,000,000.

At the Status Date, the project has the following characteristics:

• Planned value (PV) $300,000
• Actual cost (AC) $350,000
• Percentage of work completed 25%

Calculate the following quantities:

• Earned Value (EV)
• Cost Variance (CV)
• Schedule Variance (SV)
• Cost performance index (CPI)
• Schedule performance index (SPI)

Using your results, apply the three (3) formulae listed in calculation of the Estimate at Completion (EAC) of the project.

These formulae are as follows:

• EAC = AC +(BAC-EV)
• EAC = BAC/CPI
• EAC = AC + [(BAC-EV)/(CPI*SPI)]

EAC=AC + (BAC EV)

EAC=BAC/CPI EAC= AC + [(BAC-EV) / (CPI x SPI)].

For each of these calculations, calculate the To-Complete

Performance Index (TCPI).

Question # 2

Question 1 (b) --- Project 2 - 25 marks

You are managing a second project that has the same time and cost specifications as those in Question 1, but which is 40% complete at the Status Date, when Actual Costs are $350,000.

Its specifications are below

• Budgeted Actual Cost (BAC): $1,000,000.
• Schedule time to complete: 12 months
• Planned value (PV) $300,000
• Actual cost (AC) $350,000
• Percentage of work completed 25%

Calculate the following quantities:

• Earned Value (EV)
• Cost Variance (CV)
• Schedule Variance (SV)
• Cost performance index (CPI)
• Schedule performance index (SPI)

Using your results, apply the three (3) formulae listed in calculation of the Estimate at Completion (EAC) of the project.

These formulae are as follows:

• EAC = AC +(BAC-EV)
• EAC = BAC/CPI
• EAC = AC + [(BAC-EV)/(CPI*SPI)]

EAC=AC + (BAC EV)

EAC=BAC/CPI EAC= AC + [(BAC-EV) / (CPI x SPI)].

For each of these calculations, calculate the To-Complete

Performance Index (TCPI).

Question # 3

Briefly discuss 2 main advantages and disadvantages of

• EVM
• NPV
• PV
• FV
• TCPI
• Forecasting
• Payback period
• IRR
• CBR
• BCR
• Depreciation.

Question # 4

Explain the definitions of

• Direct cost
• Indirect cost
• Fixed cost
• Variable cost
• Opportunity cost
• Sunk cost

note = please give me the answer to all questions especially briefly explain questions 3and 4.