Question related to SV calculation

Submitted by hemald on Sun, 08/23/2015 - 04:19

Hello

Please help me understand how to calculate the PV for determining the SV for answering the below question.

You are a project manager who is in charge of a technical documentation project. The project is 30% complete after 2 months and has cost $53,000. The budget for the project is $90,000 and is scheduled to last 6 months. How is the project performing?

Choose one answer.
a. The project is behind schedule and over budget.  
b. The project is ahead of schedule and under budget  
c. The project is ahead of schedule and over budget.  
d. The project is behind schedule and under budget.  
 
Ans a.
Please explain me how to solve this question.
Thanks
 
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riyerashwin

Wed, 08/26/2015 - 05:55

BAC = 90000

AC = 53000

Project is 30% complete - That means work worth of 30% * 90000 is completed, i.e EV =27000

The target is to complete 90000 worth of work in 6 months. So in 2 month it is planned to complete 90000/3 = 30000, which is the PV

 

So we have 

EV = 27000

AC = 53000

PV = 30000

EV - PV - in negative   -->  Behind scheule

EV -AC - in negative  -- > over budget

So the answer is A

 

deepagoswami

Wed, 10/14/2015 - 15:20

I am a little confused with the response. Why did u divide 90,000 by 3. shouldnt it be divided by 2 cuz we have to calclate the PV for 2 months ?

Pls elaborate.

 

Thanks

Adela's picture

Adela

Wed, 10/14/2015 - 15:47

put it in this way:

The project cost $90,000 for 6 months, then how much does it costs for 2 months? 

Ans: 90000:6=X:2     (Assume X is the cost for 2 months)

       90000/6=X/2

      X=(90000*2)/6 = 90000/3 = 30000

As a result. PV=$30,000