Question
1.ln the latest earned value report for your project, you see the CPI is 1.2, the SPI is 0.8, the PV is $600,000, and the
1.ln the latest earned value report for your project, you see the CPI is 1.2, the SPI is 0.8, the PV is $600,000, and the SV is -$120,000. You can't find the CV in the report, so you need to calculate it based on the information given. What is the CPI?
2. What is the SPI if the CV is $10,000, the SV is - $3,000, and the PV is $100,000? Determine the AC?
3.Project A requires an investment (cost) of $900,000 in a project that is expected to save the company $300,000 each year. [7 marks]
Another project, project B requires costs of $300,000 with no associated cash savings that will make the company an incremental $150,000 each year for the next 20 years at $3 million. Clearly, the second project can make the company twice as much money, but:
How long will it take to pay the investment back for Projects A and B? Show your detailed work by using the payback formula and upload an Excel sheet with the payback period graph. [3 marks]
Which project would you select for the short team investment (4 years)? And Why? [1 mark]
Using the Trend analyses (linear Regression), for a long-term investment (say 10 years) what would be the return on investment for Project A and B? Which project is more profitable?
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