# (Solved Homework): You are working on a project that is scheduled to be completed in 2 years. The…

You are working on a project that is scheduled to be completed in 2 years. The total budget for the project is \$5,000. Eighteen months have passed and the schedule indicates that 75% of the work should be completed by now. But your team has already completed 90% of the project and spent \$3000.
What is the Cost Performance Index (CPI) for this project?

CPI = PV/AC = \$3750/\$3000=1.25
CPI = AC/PV = \$3,000/\$3750 =.83
CPI = AC / EV = \$3,000 /\$4,500=.667
CPI = EV / AC = \$4,500/ \$3,000=1.5
None of the above.

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Option D = EV/AC = \$4500/\$3000=1.5

Why?

Cost Performance Index is the ration of Earned value with respect to Actual costs of the project. It is a performance measurement formula.

CPI = EV /AV

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