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TOPIC: Question EMV Question

EMV Question 1 year 6 months ago #7781

  • Mai Saleh
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You are managing a site excavation project with an aggressive schedule. if you deliver one month ahead schedule
your company will receive a $300,000 bonus. if you deliver your project on schedule, the bonus will be $200,000
there is a $50,000 penalty for every week that you deliver late

you are no trying to determine if you should repair the old excavator at the cost of $20,000 or purchase a new excavator
at the cost of $150,000

using the following information

- There is 80% chance that you will able to secure your $300,000 bonus with the new excavator. Failure will result in a $50,000 penalty
- Repairing the old excavator will cost you $20,000 and will take two weeks
- There is a 60% chance that you will be able to complete your project on schedule with the repaired excavator and secure $200,000 bonus. Failure will most likely result in a $100,000 penalty

What is the best decision


my question is Answer should be

old excavator EMV = (80% * 300,000 - 20% * 50,000)

new excavator EMV = (60% * 200,000 - 40% * 100,000)


why answer is including -150,000 in first EVM and - 20,000 in Second EMV

EMV Question 1 year 5 months ago #7783

  • Cornelius Fichtner
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Mai,

Please tell us who the original author of this question is and where you have found it. We require the original source to be included with all questions. Thanks!
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC

EMV Question 1 year 5 months ago #7861

  • Mai Saleh
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This is from ur simulator
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