Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 5, you determine that $10,000 has actually been spent and three houses have been painted completely. What is the earned value of the project?

The earned value of the project=$12,000

Explanation:

The budget for the project is as follows;

Number of houses painted=number of houses every 2 weeks*number of weeks

where;

1 house every 2 weeks=0.5 houses per week

Number of weeks=5 weeks

replacing;

Number of houses painted = (0.5*5) = 2.5 houses should be painted after 5 weeks

But since three houses have been painted, we adopt the cost per number of houses painted instead of the cost per week. The earned value of the project is as follows;

Earned value=Budget per house*number of houses painted

where;

Budget per house=$4,000

Number of houses painted=3

replacing;

Earned value = (3*4,000) = 12,000

The earned value of the project=$12,000