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You are the project manager for company Inc. Your project has a budget at completion of $950,000 and is 45 percent complete, though the project should be 50 percent complete. The project has spent $450,897 to reach the 45 percent complete milestone. What is the project's cost performance index?
Suggested Answer: D
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24 comments · newest first
MA
Margart
2 days ago
I’m leaning towards option A, 0.84. It seems right.
LE
Leandro
7 days ago
I think the CPI is crucial for understanding project health.
GL
Glendora
12 days ago
This question is tricky! I feel a bit lost.
JO
Joana
17 days ago
True! We need to keep an eye on costs.
BE
Bernardine
22 days ago
CPI under 1 means we're over budget.
KI
Kimi
28 days ago
Yeah, B seems too high for this situation.
JO
Joana
1 month ago
I was thinking of B, but now I see A is better.
JU
Julianna
1 month ago
Got it! That makes sense now.
KI
Kimi
1 month ago
Exactly! So, $475,000 / $450,897 gives us about 0.84.
BE
Bernardine
2 months ago
Right! EV is 50% of $950,000, which is $475,000.
KI
Kimi
2 months ago
Sure! It’s calculated as EV/AC.
JU
Julianna
2 months ago
Why A? Can you explain?
KI
Kimi
2 months ago
I’m leaning towards option A, 0.84.
BE
Bernardine
2 months ago
I think the CPI is crucial for understanding costs.
JU
Julianna
2 months ago
This question is tricky! I feel a bit lost.
JA
Janessa
3 months ago
Totally agree, that CPI calculation looks off!
ST
Stephania
3 months ago
Wait, how did they spend almost half a million and only get to 45%?
TA
Tawny
3 months ago
I think the CPI is around 0.84.
LO
Louis
3 months ago
45% complete but should be 50%? That's not great.
DE
Derick
3 months ago
The budget at completion is $950,000.
RE
Reynalda
4 months ago
I’m leaning towards option B, but I’m not confident. I think I need to double-check my calculations for the CPI before I finalize my answer.
AN
Annabelle
5 months ago
I feel like I’ve seen a similar question before, but I can’t recall if we should be concerned about the percentage completion when calculating CPI. Does it affect the earned value?
JE
Jesse
5 months ago
I think the earned value here would be 50% of the budget, which is $475,000, right? So, if we divide that by the actual cost, we should get the CPI.
RO
Rodrigo
5 months ago
I remember we practiced calculating the cost performance index, but I’m not entirely sure about the formula. Is it just earned value divided by actual cost?