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PMI-SP · Question #87

PMI-SP Question #87: Real Exam Question with Answer & Explanation

The correct answer is A. $1,087,497.74. The project will need $1,087,497.74 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here, = (0.40*2,208,456)/725,000 = (BAC/CPI) - AC = (2,208,456/1.21846) - 725,000 = 1,812,497.74 - 725,000 The estimate to complete (ETC

Question

Jack works as a project manager for the NHQ project. His project has a budget of $2,208,456 and is scheduled to last for three years. His project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, he has spent $725,000. 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 Jack tell the management?

Options

  • A$1,087,497.74
  • B$755,000.56
  • C$1,112,978.45
  • D$790,988.76

Explanation

The project will need $1,087,497.74 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here, = (0.40*2,208,456)/725,000 = (BAC/CPI) - AC = (2,208,456/1.21846) - 725,000 = 1,812,497.74 - 725,000 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- A C. The EAC is BAC/CPI.

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