You are the project manager of the GHY Project. This project is scheduled to last for one year and
has a BAC of $4,500,000. You are currently 45 percent complete with this project, though you are
supposed to be at your second milestone, which accounts for half of the project completion. There
have been some errors in the project, which has caused you to spend $2,073,654. What is this
project’s planned value?

A.
$2,025,000

B.
There is not enough information to know

C.
$4,500,000

D.
$2,250,000

Explanation:
The planned value is the worth of the project if it were on time. In this instance, the project should
be 50 percent complete, so the planned value is half of the project budget – $2,250,000. 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 C is incorrect. This is the budget at completion.
Answer option A is incorrect. This is the earned value for the project.
Answer option B is incorrect. There is enough information to know.