Civil Engineering MCQAE Level Civil Engineering
A project has Planned Value PV = Rs.5 lakh, Earned Value EV = Rs.4 lakh and Actual Cost AC = Rs.5.5 lakh. The Cost Performance Index (CPI) is:
Construction ManagementEarned Value ManagementMEDIUM
Choose the correct answer
A
0.73
B
0.80
C
0.91
D
1.10
Correct Answer
A. 0.73
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CPI = EV/AC = 4.0/5.5 = 0.727 ≈ 0.73. CPI < 1 means project is over-budget — spending more than the value being earned. SPI = EV/PV = 4/5 = 0.80, also indicating schedule delay. Both indices < 1 signal a troubled project.
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