Your project sponsor has asked you and your team to refine the existing cost estimate for the project so that there is a solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to complete the project in one year or less for under $500,000. Also recall that you plan to purchase a web based application developed by ABC Corp. and customize it to meet requirements for this project. You'll also have consultants from Edsys, who will help you determine user requirements and develop partnership programs. Initial estimates suggested about half of the 500,000 budgeted for this project would go to hardware costs and the outsourced software and consulting services. 1. Prepare and print a one-page cost estimate for the project. Use the WBS level 1 categories provided below, and be sure to document assumptions you make in preparing the cost estimate. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume twice those numbers for outsourced labor. a. Project management (internal) b. Requirements definition c. Off-the-shelf system installation d. System customization (for transferring/entering product and customer information and developing new capabilities like managing referrals, displaying advertisements, and tracking customer usage patterns) e. Testing f. Training, rollout, and support. 2. Using the cost estimate you created above, prepare a cost baseline by allocating the costs by WBS for each month of the project. 3. Assume you have completed six months of the project. The BAC was $500,000 for this 12-month project. Also assume the following: PV= $300,000 EV = $280,000 AC =$250,000 using this information, write a one to two page report that answers the following questions... a. What is the cost of variance, schedule variants, cost performance Index (CPI), and schedule performance Index (SPI) for the project? b. Use the CPI to calculate the estimate at completion (EAC) for this project. Use the SPI to estimate how long it will take to finish this project. Sketch and earned value chart using the above information, including the EAC point. Write a paragraph explaining what this chart shows. c. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or overbudget? Should you alert your senior management and ask for assistance? Should you talk to your sponsor before the meeting to discuss this data?