Question: You have planned for a project to write a software application to take 1 year. The costs on this project are budgeted at $12,500 per

You have planned for a project to write a

You have planned for a project to write a software application to take 1 year. The costs on this project are budgeted at $12,500 per month. Six months into the project, you find the software application is 50% completed, and you have spent $70,000. 1. Based on the information provided in the example above, fill in the values for the following table: Value Budget at Completion (BAC) Planned Value (PV) Earned Value (EV) Actual Cost (AC) Cost Variance (CV) Schedule Variance (SV) Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate At Completion (EAC) Estimate To Complete (ETC) Variance At Completion (VAC)* To-Complete Performance Index (cost) 2. Is the project ahead of or behind schedule? 3. Is the project going to be completed over or under budget? Helpful Formulas: Term Formula Earned value (EV) EV = PV of all completed work Actual Cost (AC) Sum of the costs for the given period of time Cost variance (CV) CV = EV - AC Schedule variance (SV) SV = EV - PV Cost performance index (CPI) CPI = EVIAC Schedule performance index (SPI) SPI = EV/PV Estimate at completion (EAC) EAC = BAC/CPI Estimated to Complete (ETC) ETC = EAC AC Expected Monetary Value (EMV) Probability * EMV Outcome for each branch and then sum the results =SUM(Probability*Estimated Profits) Variance At Completion (VAC) VAC = BAC EAC To-Complete Performance Index (cost) TCPI = (BAC-EV) / (BAC-AC)

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