Cost Performance Index from Earned Value

Easyearned valueCPI
A project has earned value EV = $80,000 and actual cost AC = $100,000. What is the cost performance index (CPI)?
  1. A0.80
  2. B1.00
  3. C1.20
  4. D1.25
Show solution

Answer: A. 0.80

CPI = EV/AC = 80,000/100,000 = 0.80. Less than 1 indicates that the earned value is below the amount spent.
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