Free Preparation Discussions
MENU
PMI Exam PMI-SP Topic 5 Question 33 Discussion
Topic #: 5
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?
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
ETC = EAC - AC
= (BAC/CPI) - AC
=(1,258,456/0.95882) - 525000
= 1,312,504- 525000
= 787,504
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.
Currently there are no comments in this discussion, be the first to comment!