Question

A project has five activities. From the project plan, you know that the total budgeted cost for the activities are: Activity A, $73,000 activity B, $93,000 activity C, $81,000 activity D, $120,000 activity E, $72,000 The project has been going on for 8 weeks. The progress report at the end of week 8 shows the following information Activity A is 80% completed, activity B is 100% completed activity C is 70% completed activity D is 20% completed, and activity E is 0% completed Furthermore, the report also shows that a total of $224,000 has been spent on the project At the end of week 8, the project cumulative budgeted cost should be $210,000 NOTE: Do not use any comma in your answer. Use at least 4 decimals. At the end of week 8, the project cumulative earned value is dollars At the end of week 8, the project cost performa

Answer 1

Earned value is calculated as

EV = $\sum P_{i}*B_{i}$

where Pi is progress for i activity and Bi is budget for i activity and i=A, B, C, D, E

Hence, EV = 80%*73,000 + 100%*93,000 + 70%*81,000 + 20%*120,000 + 0%*72,000

= 58,400 + 93,000 + 56,700 + 24,000 + 0 = $232,100

Hence, at the end of week 8, the project cumulative earned value is $232,100