Given the Following Information About a Project

question 10

Multiple Choice

Given the following information about a project:
EV = $1,000,000
PV = $2,000,000
AC = $3,000,000
BAC = $4,000,000
What can we legitimately say about this project if this is the only information we have?

• A) 25% of the total work planned has been completed.
• B) The project is ahead of schedule.
• C) The project is under budget.
• D) It is highly likely the project will be completed on time.
• E) The CPI is .33.
• F) A and E only

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Bond Interest Expense

The cost associated with borrowing funds through the issuance of bonds, representing the interest payments made to bondholders.

Discount

A reduction in the price of goods or services, often to attract consumers or to reward volume purchases.

Effective Interest Method

An accounting technique used to calculate the amortized cost of a bond or loan and to allocate the interest expense over the borrowing's life.