PMI-SP · Question #252
You are the project manager of the NHQ project. Your project has a budget of $1,258,456, and is scheduled to last for three years. Your project is currently forty percent complete though it should…
The correct answer is B. $787,504. The project will need $787,504 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here, CPI = EV/AC =(0.40*1,258,456)/525000= 0.95882, and = (BAC/CPI) - AC =(1,258,456/0.95882) - 525000 = 1,312,504- 525000 The estimate to…
Question
You are the project manager of the NHQ project. Your project has a budget of $1,258,456, and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. Management would like to create a report telling them how much more the project will need to complete. What value should you tell management?
Options
- A$566,305
- B$787,504
- C$1,312,504
- D$733,456
How the community answered
(24 responses)- A8% (2)
- B46% (11)
- C17% (4)
- D29% (7)
Explanation
The project will need $787,504 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here, CPI = EV/AC =(0.40*1,258,456)/525000= 0.95882, and = (BAC/CPI) - AC =(1,258,456/0.95882) - 525000 = 1,312,504- 525000 The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC- AC. The EAC is BAC/CPI. Answer option C is incorrect. This is the estimate at completion. Answer option A is incorrect. This is the planned value. Answer option D is incorrect. This is not a valid value based on the current project performance.
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