Question

At six months in, your $785,000 project is 35% complete and the TCPI is 0.74 and you've spent $95,000 to date. What is the earned value of the project?

1) $595,000
2) $580,900
3) $690,000
4) $274,750

Answer 1

The earned value of the project is found by multiplying the total project budget ($785,000) by the percent complete (35%), which results in an earned value of $274,750.

Step-by-step explanation:

The student is asking about calculating the earned value (EV) of a project based on its percentage completion and its total budget. Earned value is a project management metric used to assess the project's progress and performance by comparing it to the planned budget and the actual cost spent to date.

To calculate the earned value of this $785,000 project that is 35% complete, we use the formula:

EV = Total Project Budget × Percent Complete

EV = $785,000 × 35%

EV = $785,000 × 0.35

EV = $274,750

Therefore, the earned value of the project is $274,750, which corresponds to option 4 in the provided choices.