A project manager is calculating the Planned Value (PV) for a construction project. The project has a Budget at Completion (BAC) of $500,000 and is expected to be 30% complete by the end of the current month. What is the Planned Value (PV) for this project?
$133,333
$166,667
$350,000
$150,000
The correct answer is $150,000. To calculate Planned Value (PV), we use the formula: PV = Planned % Complete x Budget at Completion (BAC). In this case, we have:
Plugging these values into the formula: PV = 0.30 x $500,000 = $150,000
This calculation represents the amount of work that should have been completed according to the project schedule, expressed in monetary terms. It's important to note that PV is based on the planned progress, not the actual progress. This value will be used in conjunction with other EVM metrics like Earned Value (EV) and Actual Cost (AC) to assess project performance and forecast future outcomes.
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