86 Managing projects as investments: Earned value to business value
Combining the data from the table with that from the network logic
diagram, we can see that the critical path activities, due to their delaying
the end of the project and thus reducing our EMV, have drag costs that
range from $40,000 for Activity E’s 3 days of drag to $80,000 for Activity
F’s 7 days of drag. The rst day of drag on each activity pushes the comple-
tion to Day 25 and invokes the delay cost of $20,000. Every other day of
drag on each activity costs $10,000 as it deprives us of a day’s worth of
acceleration premium.
Remember, this is all cost due to reduction in the project’s EMV. It is
also possible that, through the marching army costs factor due to project ...