QUESTION 2 EARNED VALUE AND RESOURCE PLANNING (25 Marks)

2.1 Earned value management helps you quantify the performance of a project. It compares costs and schedules to a baseline to determine if the project is on track. (Project Plan 365, n.d.). Based on this description, analyses the project performance, based on data provided below and answer the following questions:

Estimate At Completion (EAC)

$40 622 917

Actual Cost of Work Performed (ACWP)

$1 667

Budgeted Cost of Work Performed (BCWP)

$2 000

a) What is the earned value of the project if the current percentage complete is 35%, estimate at completion is $40 622 917, actual cost of work performed is $1 667, and the budgeted cost of work performed is $2 000. (5 Marks)

b) Analyse the project performance based on the values and answer given from the previous question a). (5 Marks)