You are the project manager of the OOI Project and you’re forty percent complete with this project.
The project has a BAC of $2,345,650 and you have spent $950,000 to date. Based on your
aggressive scheduling you should be at the 45 percent milestone today, but due to some early
delays you’re running late. What is the planned value of your project?

A.
$950,000

B.
$2,375,000

C.
$1,055,543

D.
$938,260

Explanation:
The planned value is forty-five percent of the project’s BAC, or $1,055,543. Planned value (PV) is
the authorized budget assigned to the schedule work to be accomplished for a schedule activity or
work breakdown structure component. It serves as a baseline against which actual performance is
measured. The theory of planned value is of vital importance to the project management team and
it is important to keep careful track of this. The term planned value can also be in some situations
referred to by the project management team and the project management team leader as the
budgeted cost of work scheduled (BCWS).
Answer option D is incorrect. $938,260 is the project’s earned value.
Answer option A is incorrect. $950,000 is the project’s actual costs.
Answer option B is incorrect. $2,375,000 is the project’s estimate at completion.