PMI-SP · Question #87
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…
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…
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
How the community answered
(51 responses)- A57% (29)
- B6% (3)
- C14% (7)
- D24% (12)
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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