3: Earned Value

This is an Exercise about understanding Earned Value. the VAC.

This is worth 5% of your final grade.

There are 3 Projects and you have to calculate

Project A (3 pts.)

You are given the following data. Calculate the VAC (Variance at Completion) for two scenarios as listed below

Project Budget Duration Status EV

PV AC BAC =

A $400,000 90 days 60 days $140,000 $150,000 $178,000

1. Assume future budget estimates do not change

ETC =

EAC =

VAC =

2. Assume future costs continue at the same spending rate

ETC =

EAC =

VAC =

Project B (3 pts.)

You are given the following data. Calculate the VAC (Variance at Completion).

Project Budget Duration Status EV

PV AC BAC =

B $220,000 200

140 $180,000 $180,000 $174,000

1. Assume future budget estimates do not change

ETC = EAC = VAC =

2. Assume future costs continue at the same spending rate

ETC =

EAC =

VAC =

Project C (4 pts.)

You are given the following data. Calculate the VAC (Variance at Completion).

Project Budget Duration Status EV

PV AC BAC =

C $3,500,000 450

80 $600,000 $580,000 $923,000

1. Assume future budget estimates do not change

ETC =

EAC =

VAC =

2. Assume future costs continue at the same spending rate

ETC =

EAC =

VAC =

3. Look at the VAC results for Project C. Make a comment or recommendation regarding the ETC, EAC, and VAC.