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Tomtit [17]
3 years ago
11

Assume you have collected the following data for your project. Its budget is $75,000 and it is expected to last 4 months. After

two months, you have calculated the following information about the project:PV = $45,000EV = $38,500AC = $37,000Calculate the SPI and CPI. Based on these values, estimate the time and budget necessary to complete the project? How would you evaluate these findings (i.e., are they good news or bad news?)
Business
1 answer:
Kitty [74]3 years ago
5 0

Answer:

0.85 and 1.04

Explanation:

The computations are shown below:

Schedule performance index (SPI)

= (Earned Value) ÷ (Planned Value)

= ($38,500) ÷ ÷($45,000)

= 0.85

Because we see that SPI is less than 1 which means that less work is done than expected or planned work. Hence, it is bad news

And, the cost performance index would be

= (Earned Value) ÷ (Actual Cost)

= ($38,500) ÷ ($37,000)

= 1.04

Because we see that CPI is more than 1 which means earning is more than the actual cost. Hence, it is bad news and it is under the budget

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