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• Initial Budget: $5,000,000
• Year 1: Budget = $2,000,000, Actual Costs = $2,200,000
• Year 2: Budget = $1,500,000, Actual Costs = $1,700,000
• Year 3: Budget = $1,500,000, Actual Costs = $1,400,000

Questions:

1. Calculate the total budget variance at the end of Year 3.
2. Determine the cost overrun or underrun for each year.
3. Suggest measures the project manager could take to control costs in future projects.