Task 2: Project cost control (25 marks)

You are required to control the budget for the MYH project described in Task 1.

2.1 What is the total budget at completion (BAC) for the project? (3 marks)

2.2 Assume that the work for the first week is completed in the project. The following information has been provided as a result of work done so far.

Plan Value (PV) = $400, 000

Earned Value (EV) = $250, 000

Actual Cost (AC) = $600, 000

Answer the following questions 2.2.1 - 2.2.5 (must show all the working).

Explain a likely reason for the difference between PV and AC for the first week of this project. (4 marks)

Calculate the cost variance (CV) and the cost performance index (CPI) for the first week in this project? Is the project under or over budget? (6 marks)

Calculate the schedule variance (SV) and the schedule performance index (SPI) for the first week in this project? Is the project ahead of or behind schedule? (6 marks)

Calculate the new estimate at completion (EAC) for this project after the completion of first weeks work. (3 marks)

Calculate how long it will now take to finish this project after working on the project for a week. (3 marks)