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 ¼ $23,000
EV ¼ $20,000
AC ¼ $25,000
BAC ¼ $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 7-5 as a guide.