PMP Question 184

[admin]

Project Manager conducted EVM analysis and found that Cost Performance Index (CPI) = 1.10, Actual Cost (AC) = $800 million and Planned value = $890 million. How is the project going?

a. Project is over budget but ahead of schedule
b. Project is over budget but behind schedule
c. Project is under budget but ahead of schedule
d. Project is under budget but behind schedule

[admin]

Correct answer is D.

EV = CPI x AC = 1.1 x $800M = $880M
CV = $880M – $800M = $80M
SV = $880M – $890M = -$10M
SPI = $880M / $890M = 0.99

Since CV is positive, therefore, project is under budget.
Since SV is negative, therefore, project is behind schedule.

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