The project must have been completed already. An hourly rate of $100 per hour is provided. Which of the following is the planned value (PV) for the project?

Last Updated on February 10, 2022 by Admin 2

You work as a project manager for HRM Inc. Your project was baselined at 8 hours, but 11 hours have been spent and the estimate to complete is 1 additional hour. The project must have been completed already. An hourly rate of $100 per hour is provided. Which of the following is the planned value (PV) for the project?

  • $600
  • $800
  • $700
  • $500
Explanation:

Answer option B is correct.

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).

PV = Hourly Rate * Total Hours Planned or Scheduled 
     = ($100 * 8 hours)
     = $800

Reference: “Project Management Body of Knowledge (PMBOK Guide), Fourth edition”
Chapter: Time and Cost Management

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