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?

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)

You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value or $15,000 and a benefit-cost ratio of 5:2. Which project should you choose?

You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value or $15,000 and a benefit-cost ratio of 5:2. Which project should you choose?

A. Project A

B. Project B

C. Project C

D. There is not enough information to decide.


Answer: The important information in this question are the NPV values. The given times and BCR are unnecessary information. Choose the greatest NPV. (B)

You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. Which of the following is the BEST metric to use for forecasting?

You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. Which of the following is the BEST metric to use for forecasting?

A. EV and AC

B. SV and CV

C. ETC and VAC

D. SPI and CPI


Answer: EV, AC, SV, CV, SPI, AND CPI are all measures of PAST performance. ETC and VAC predict future values. Forecasting is future. (C)

You are managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of .94. How would you BEST describe this project?

You are managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of .94. How would you BEST describe this project?

A. The project is ahead of scheule and within its budget.

B. The project is behind schedule and within its budget.

C. The project is ahead of schedule and over its budget.

D. The project is behind schedule and over its budget.


Answer: SPI is greater than 1, you are ahead of schedule. CPI is less than 1, you are over budget. (C)

You are managing a project with AC = $25,100 , ETC = $45,600 , VAC = -$2,600, BAC = $90,000, and EAC = $92,100. Your sponsor asks you to forecast how much money you expect to spend on the remainder of the project. Which is the BEST estimate to use for this forecast?

You are managing a project with AC = $25,100 , ETC = $45,600 , VAC = -$2,600, BAC = $90,000, and EAC = $92,100. Your sponsor asks you to forecast how much money you expect to spend on the remainder of the project. Which is the BEST estimate to use for this forecast?

A. $45,600

B. $87,400

C. $90,000

D. $92,100


Answer: The question is asking how much MORE money will be spent to complete the project. This is the Estimate to Completion, or ETC, which is given to you. $45,600 (A)

You are managing a project with an EV of $15,000, PV of $12,000, and AC of $11,000. How would you BEST describe this project?

You are managing a project with an EV of $15,000, PV of $12,000, and AC of $11,000. How would you BEST describe this project?

A. The project is ahead of schedule and within its budget.

B. The project is behind schedule and within its budget.

C. The project is ahead of schedule and over its budget.

D. The project is behind schedule and over is budget.


Answer: SPI = EV/PV = 15000/12000 = 1.25 > 1 so we're ahead of schedule. CPI = EV/AC = 15000/11000 = 1.36 > 1 ($1.36 in value for every dollar spend) so we're within our budget. (A)