The Earned Value of a Project Is the

question 55

Multiple Choice

The earned value of a project is the

• A)Project cost to date adjusted for project scope changes.
• B)Total project cost to date.
• C)Cost incurred minus the planned cost.
• D)Percent of the original budget that has been earned by actual work.
• E)The planned time-phased baseline of the value of work scheduled.

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Definitions:

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Cost of Capital

The requisite rate of profit an enterprise should attain in investment activities to keep its market presence and secure funding.

Terminal Value

The estimated value of a business or project at the end of a forecast period, used in financial modeling.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all cash inflows and outflows associated with it.