question 2 [20 Marks] Assume that operations on a work package were expected to cost £2,500. After 4 weeks they were scheduled to have cost £1,900 but instead have cost £1,500 and it is estimated that 50% of the work package has been completed. a) b) c) Assume that the project costs are evenly spread throughout the duration of the work package, make a rough sketch of typical cost versus time curves for the Planned Value (PV), Actual Cost (AC) and Earned Value (EV). [3 marks] 018-19 Explain why Earned Value improves the projected outcome analysis of a project, and how this might determine the cancellation of a programme of work. [3 Marks] Calculate the: i. ii. iii. iv. V. vi. VII. Cost Variance Schedule Variance Cost Performance Index Schedule Performance Index Cost-Schedule Index Estimated cost to complete (ETC) Estimated cost at completion (EAC) [2 marks] [2 marks] [2 Marks] Question 3 [10 Marks] Portsmouth city council wants the municipal engineer to evaluate three alternatives for supplementing the city water supply. The first alternative is to continue deep well pumping at an annual cost of $10,500. The second alternative is to install an 18" pipeline from a surface reservoir. First cost is $25,000 and annual pumping cost is $7000. The third alternative is to install a 24" pipeline from the reservoir at a first cost of $34,000 and annual pumping cost of $5000. Life of all alternatives is 20 years. For the second and third alternatives, salvage value is 10% of first cost. With interest at 8%, which alternative should the engineer recommend? Use present worth analysis. realme Shot on realme 9i [2 Marks] [2 marks] [2 marks] [2 marks] Page 2 of 5 2024 01 13 15:46