You've been hired by a large consulting firm to evaluate a software project for them. You have access to the CPI and EV for the project, but not the AC. The CPI is .92 and the EV is $172,500. How much money has actually been spent for the project?
A. $158,700
B. $172,500
C. $187,500
D. There is not enough information to calculate the actual cost.
Answer: From the equations, we have CPI = EV/AC. Solving for AC, gives us AC = EV/CPI = 172,500/0.92 = $187,500 (C)