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You are calculating the performance of your project. If the actual cost is $80,000, the planned value is $70,000 and the earned value is $65,000, what is the cost performance index?

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Tundexi

Answer:

Cost performance index is 81.25%

Explanation:

Actual cost = $80,000

Planned value = $70,000

Earned value = $65,000

Cost performance index (CPI) is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project.

CPI = EV / AC

= $65,000 / $80,000

= 0.8125

= 0.8125 x 100

= 81.25%

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