ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Calculate CPI and TCPI and comment on whether our cost management in the following project is reasonable.  Give your answers to 2 decimals places.

 

  • BAC=$20,000
  • EV=$19,000
  • PV=$19,000
  • AC=$17,000

 

CPI=Answer

TCPI=Answer

How reasonable is the prediction that we will finish the project on budget? Given our performance so far:

 

We are being too optimistic thinking that we will complete the project on budget - we will probably finish the project over budget
It is a reasonable assumption to think that we will complete the project on budget
We are being too conservative - we will come in well under budget at this rate

 

 
 
 
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