Question

You are managing a project with a BAC of $100,000, EV of $50,000, PV of 60,000, and AC of $40,000. The project sponsor asks you about the efficiency of the use of financial resources in the project so far. How would you answer her question

Answer 1

CPI= 1.25 THE PROJECT FINANCE PERFORMANCE IS GOOD SO FAR

Step-by-step explanation:

To know the efficiency of the use of financial resources in the project so far we need to know the Cost Performance Index (CPI)

CPI =EV/AC

EV =$50,000

AC=$40,000

CPI =$50000/$40000

CPI = 1.25

So for every dollar you use 1.25 dollars is made this means the project so far is a efficient