Project Cost Management: Quiz-7

You are managing a project laying underwater fiber optic cable. The total cost of the project is $52/ meter to lay 4 km of cable across a lake. It’s scheduled to take eight weeks to complete, with an equal amount of cable laid in each week. It’s currently the end of week 5, and your team has laid 1,800 meters of cable so far. What is the SPI of your project?

You are managing a project for a company that has previously done three projects that were similar to it. You consult with the cost baselines, lessons learned, and project managers from those projects, and use that information to come up with your cost estimate. What technique are you using?

Your company has asked you to provide a cost estimate that includes maintenance, installation, support, and upkeep costs for as long as the product will be used. What is that kind of estimate called?

You are creating your cost baseline. What process are you in?

Your company has two projects to choose from. Project A is a billing software project for the Accounts Payable department; in the end it will make the company around $400,000 when it has been rolled out to all of the employees in that department. Project B is a payroll application that will make the company around $388,000 when it has been put to use throughout the company. After a long deliberation, your board chooses to go ahead with Project B. What is the opportunity cost for choosing Project B over Project A?

You are working on a project with a PV of $56,733 and an SPI of 1.2. What’s the earned value of your project?

A project manager is working on a large construction project. His plan says that the project should end up costing $1.5 million, but he’s concerned that he’s not going to come in under budget. He’s spent $950,000 of the budget so far, and he calculates that he’s 57% done with the work, and he doesn’t think he can improve his CPI above 1.05. Which of the following BEST describes the current state of the project?

You’re working on a project that has an EV of $7,362 and a PV (BCWS) of $8,232. What’s your SV?

Your project has a BAC of $4,522 and is 13% complete. What is the earned value (EV)?

You are working on a project with an SPI of .72 and a CPI of 1.1. Which of the following BEST describes your project?