Certified Associate in Project Management (CAPM) — Question 1

A project has an estimated duration of 10 months with a total budget of US$220,000. At the end of the fifth month, it is estimated that at completion, the project will incur US$250,000.
If the actual cost (AC) calculated is US$150,000, what is the earned value (EV) of the project?

Answer options

• A. US$-30,000
• B. US$120,000
• C. US$370,000
• D. US$400,000

Correct answer: B

Explanation

The earned value (EV) is calculated based on the percentage of work completed relative to the total project budget. In this case, since the project budget is US$220,000 and it is halfway through, the EV is US$120,000. Options A, C, and D do not accurately reflect the project's performance against its budget.