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Project Cost Management Assignment Guide

The document describes an individual assignment with two questions. Question 1 involves calculating project status values like planned value, earned value, actual cost, etc. for a fence building project. Question 2 asks the reader to calculate and compare taking a $10,000 loan that is paid back at $3,000/year over 5 years versus paying $15,000 at the end of 5 years, both with a 10% interest rate.

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Prachi Yadav
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61 views2 pages

Project Cost Management Assignment Guide

The document describes an individual assignment with two questions. Question 1 involves calculating project status values like planned value, earned value, actual cost, etc. for a fence building project. Question 2 asks the reader to calculate and compare taking a $10,000 loan that is paid back at $3,000/year over 5 years versus paying $15,000 at the end of 5 years, both with a 10% interest rate.

Uploaded by

Prachi Yadav
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Individual Assignment

QUESTION 1
You have a project to build a new fence. The fence is four sided as shown below. Each
side is to take one day to build and is budgeted for $1,000 per side. The sides are
planned to be completed one after the other. Today is the end of day three. (Assume
that the sides have a FINISH-TO-FINISH relationship)

Using the project status chart below, fill in the blanks in the chart (Use “PV” as an
example) – All calculations to be done to 3 decimal places.

Activity Day 1 Day 2 Day 3 Day 4 Status End of Day 3

Side 1 S F Complete, spent


$1,000
Side 2 S ----F PF Complete, spent
$900
Side 3 S---- PS PF 50% done, spent
$1000
Side 4 S----- PS PF 75% done,
spent $400

Key:
• S = Actual Start
• F = Actual Finish
• PS = Planned Start
• PF = Planned Finish

PMPG 5013 Project Cost Management 1


What Is: Calculation Answer Interpretation of the Answer
PV 1000 + 10000 + 10000 3000 We should have done $3000
worth of work
EV
AC
BAC
CV
CPI
SV
SPI
EAC
ETC
VAC

QUESTION 2

You need a loan in the amount of $10,000 with a repayment period of 5 years. You did
some market research, and it seems that you have two options as follows:
• Pay $3,000 per year at BMO or
• Pay 15,000 at the end of the 5-year period at CIBC.
What option is better. The interest/discount rate is 10% at both banks.

Marking Scheme for Question #2


Calculations shown for both options: 2% (2% x 2 = 4%)
Explanation of answer: 1%

Total Marks for Question #2: 5%

PMPG 5013 Project Cost Management 2

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