Accounting

The project manager asked you to evaluate the project performance at the end of year 1 by using performance indexes. He gave you the following information: actual cost is $307380, earned value is $319039, and planned value is $315910.

Calculate the cost performance index(CPI) of this project at year 1 Enter your answer as: 1.23 Round your answer to 2 decimal places

Manny’s Manufacturing must decide whether to build or buy a software package to keep track of its inventory. Manny’s computer experts estimate that it will cost $325,000 to buy the necessary programs. To build the programs in-house, programmers will cost $5000 each per month.

What factors should Manny consider in making his decision? When is it better to build? To buy?

Solution:

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