Given the Following Information About a Project

question 9

Multiple Choice

Given the following information about a project:
EV = $20,000
PV = $15,000
AC = $25,000
BAC = $40,000
Estimated Duration = 6 months
Assuming this is the only information available, which of these can we legitimately conclude about the project?

• A) Time Estimate at Completion EAC_time) ) = 4.5 months.
• B) CV = +$5,000
• C) Cost Estimate at Completion EAC_cost) )= $32,000
• D) CPI = 1.33
• E) SV% = 1.2

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Definitions:

Discount Rate

This is the interest rate that's used to determine the current value of future cash flows in the analytical process of discounted cash flow.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It represents the opportunity cost of investment.

Time Value

The idea that presently available money surpasses the value of the same sum in the future, due to potential income it could generate.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.