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Question:
To calculate the project’s performance using the information provided, you can use the cost performance index (CPI) earned value calculation. The formula for calculating CPI is CPI = EV ÷ AC. Plug in the values to calculate the following:
$5,000 ÷ $7,500 = $0.67.
A CPI of less than 1 means that the project is performing over budget.
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