Hover over the red dots for notes.

Answer these question first and the formulas will be calculated for you.

What is the project budget? 1,000,000

How complete is the project? 40%
How complete should the project be? 50%
How much has the project spent? $450,000

Budget at completion 1,000,000

Actual costs 450,000
Earned value 400,000
Planned value 500,000
Cost variance -50,000
Schedule variance -100,000
Cost performance index 0.89
Schedule performance index 0.80
Estimate at completion 1,125,000
Estimate to complete 675,000
To-complete performance index (BAC) 1.09
To-complete performance index (EAC) 0.89
Variance at completion -125,000
 Indexes

1.00
0.90
0.80
0.70
0.60
0.50 Cost performance index
0.40 Schedule performance
index
0.30
0.20
0.10
0.00

Variances

-20,000

-40,000

-60,000 Cost variance

Schedule variance

-80,000

-100,000

-120,000
Formula Name Formula
Planned value Percent of where the project should be
Earned value Percent of where the project is
Cost variance EV-AC
Schedule variance EV-PV
Cost performance index EV/AC
Schedule performance index EV/PV
Estimate at completion BAC/CPI
Estimate to complete EAC-AC
To-complete performance index (BAC) (BAC-EV)/(BAC-AC)
To-complete performance index (EAC) (BAC-EV)/(EAC-AC)
Variance at completion BAC-EAC
Hint Mnemonic
Someone always has to tell you where you are in the project. Please
This is the percent complete times the BAC. Eat
1. EV always comes first. Carl's
2. Variance is something minus something. Sugar
3. Index is something divided by something. Candy
4. Schedule always uses planned value. Costs are always actual costs. S
Account for pennies lost on the dollar. E
How much more do you need? E
What's left to do divided by what cash is left. The
What's left to do divided by the predicted amount of cash left. Taffy
How far is the project likely to be upside down? Violin
 Future Value Formula
FV = PV(1 + i)n
Fill in the value for your questions in the following cells.
PV is Present value
i is the interest rate
n is the number of time periods

The following cells will be calculated for you based on the above entries.
Present value is
(1 + i) is
Time value is
Future value result is

Present Value Formula

PV = FV/(1 + i)n
Fill in the value for your questions in the following cells.
FV is Future value
i is the interest rate
n is the number of time periods

The following cells will be calculated for you based on the above entries.
Future value is
(1 + i) is
Time value is
Present value result is
 Future Value Formula

e value for your questions in the following cells.

$45,000,000
0.06
4

lls will be calculated for you based on the above entries.

$45,000,000.00
1.06
1.262
$56,811,463.20

Present Value Formula

e value for your questions in the following cells.

$56,811,463
0.06
4

lls will be calculated for you based on the above entries.

$56,811,463.20
1.06
1.26247696
$45,000,000.00
 Future Value Questions
Here are a few Question One
questions that deal with
You are the project manager of
the future and present the NHQ Project. This project
value of money. I needs $456,786 to get started
recommend you try to and will last three years. What
solve these by hand is the future value of this
first, and then you can investment considering the
review your answers on interest rate is 6 percent?
the Formulas page. You
can also make up your
own questions and test
your math agility. Question Two
You are the project manager of
the XCV Project. This project
needs $876,000 to get started
and will last seven years. What
is the future value of this
investment considering the
interest rate is 6 percent?

Question Three
You are the project manager of
the UPD Project. This project
needs $549,007 to get started
and will last four years. What is
the future value of this
investment considering the
interest rate is 6 percent?
Present Value Questions
Question One
You are the project manager of
the AAX Project. You believe this
project will be worth $1,987,112
in three years. What is the
present value of this project's
promised return if the assumed
interest rate is 6 percent?

Question Two
You are the project manager of
the QSA Project. You believe this
project will be worth $10,980,000
in five years. What is the present
value of this project's promised
return if the assumed interest
rate is 6 percent?

Question Three
You are the project manager of
the QSA Project. You believe this
project will be worth $765,000 in
two years. What is the present
value of this project's promised
return if the assumed interest
rate is 6 percent?