14 Mar b. Cost variance (CV)
Complete the calculations for the following two hypothetical projects then provide a one-page memo for each project (as if you were submitting to a supervisor) providing a detailed account of the current situation for each project with any recommendations. This assignment should be 4 pages in length with the calculations on separate pages and each one-page memo on its own page. Use formulas provided in the Kloppenborg text. There will be no need to reference the textbook or any outside source in the memos. Just provide your analysis of the projects.
Project 1
Use the following information to answer parts a through h.
PV – $450,000
EV – $300,000
AC – $500,000
BAC – $1,500,000
a. Schedule variance (SV)
b. Cost variance (CV)
c. Schedule performance index (SPI)
d. Cost performance index (CPI)
e. Estimate to complete (ETC—first method)
f. Estimate to complete (ETC—second method)
g. Estimate at completion (EAC)
h. To-complete performance index (TCPI)
Project 2
Use the following information to answer parts a through h.
PV – $50,000
EV – $60,000
AC – $58,000
BAC – $150,000
a. Schedule variance (SV)
b. Cost variance (CV)
c. Schedule performance index (SPI)
d. Cost performance index (CPI)
e. Estimate to complete (ETC—first method)
f. Estimate to complete (ETC—second method)
g. Estimate at completion (EAC)
h. To-complete performance index (TCPI)
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