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    Given the information below for a one year project please help with the questions that follows:

    PV is Planned Value
    EV is Earned value
    AC is actual cost
    BAC is budget at Completion

    PV = $23,000
    EV = $20,000
    AC = $25,000
    BAC = $120,000

    a. What is the cost variance, schedule variance and 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? It is 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 schedule performance index (SPI) to estimate how long it will take to finish the project.

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    Solution Preview

    The difference between Earned Value and spending (AC) is Cost Variance
    Cost Variance = $20,000 - $25,000= -$5,000
    The difference between Earned Value and plan (PV) is Schedule Variance
    Schedule Variance = $20,000 - $23,000= -$3,000
    The ratio of Earned Value to cost (AC) is Cost Performance ...

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