The problem provides key metrics used in Earned Value Management (EVM):
Earned Value (EV):$1,500,000
Actual Cost (AC):$1,000,000
Planned Value (PV):$2,000,000
Key Points:
Schedule Performance Index (SPI):
SPI = EV / PV = $1,500,000 / $2,000,000 = 0.75
An SPI less than 1 indicates the project isbehind schedule.
Cost Performance Index (CPI):
CPI = EV / AC = $1,500,000 / $1,000,000 = 1.5
A CPI greater than 1 indicates the project isunder budget.
Conclusion:The correct answer isC. Project is behind schedule, but under budgetbecause the SPI indicates a delay in schedule, and the CPI shows that the project is currently spending less than planned.
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