Hover over the red dots for notes.

Answer these question first and the formulas will be calculated for you.
What is the project budget?
How complete is the project?
How complete should the project be?
How much has the project spent?
Budget at completion
Actual costs
Earned value
Planned value
Cost variance
Schedule variance
Cost performance index
Schedule performance index
Estimate at completion
Estimate to complete
To-complete performance index (BAC)
To-complete performance index (EAC)
Variance at completion

45,000
20%
50%
$15,000
45,000
15,000
9,000
22,500
-6,000
-13,500
0.60
0.40
75,000
60,000
1.20
0.60
-30,000

Indexes
0.70
0.60
0.50
0.40

Cost performance index

0.30

Schedule performance
index

0.20
0.10
0.00

Variances
0
-2,000
-4,000
-6,000
-8,000
-10,000
-12,000
-14,000
-16,000

Cost varianc e

EAC Formulas
CPI will remain the same
BAC/CPI

BAC
45,000

Trends will continue

AC+BAC-EV

AC
15,000

Future work estimate is no longer valid

AC+ETC

AC
15,000

Weight values for SPI or CPI

AC+[(BAC-EV)/(CPIxSPI)

AC
15,000

CPI
0.60

Result
75,000.00

BAC
45,000

EV
9,000

ETC
60,000

Result
75,000.00

BAC
45,000

EV
9,000

Result
51,000.00

CPI
0.60

SPI
0.40

Result
165,000.00

Formula Name
Planned value
Earned value
Cost variance
Schedule variance
Cost performance index
Schedule performance index
Estimate at completion
Estimate to complete
To-complete performance index (BAC)
To-complete performance index (EAC)
Variance at completion

Formula
Percent of where the project should be
Percent of where the project is
EV-AC
EV-PV
EV/AC
EV/PV
BAC/CPI
EAC-AC
(BAC-EV)/(BAC-AC)
(BAC-EV)/(EAC-AC)
BAC-EAC

Hint
Someone always has to tell you where you are in the project.
This is the percent complete times the BAC.
1. EV always comes first.
2. Variance is something minus something.
3. Index is something divided by something.
4. Schedule always uses planned value. Costs are always actual costs.
Account for pennies lost on the dollar.
How much more do you need?
What's left to do divided by what cash is left.
What's left to do divided by the predicted amount of cash left.
How far is the project likely to be upside down?

Mnemonic
Please
Eat
Carl's
Sugar
Candy
S
E
E
The
Taffy
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

Here are a few

questions that deal with
the future and present
value of money. I
recommend you try to
solve these by hand
first, and then you can
review your answers on
the Formulas page. You
can also make up your
own questions and test
your math agility.

Future Value Questions

Question One
You are the project manager of
the NHQ Project. This project
needs $456,786 to get started
and will last three years. What
is the future value of this
investment considering the
interest rate is 6 percent?

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?