Exam PMI-SP topic 1 question 61 discussion

Actual exam question from PMI's PMI-SP

Question #: 61
Topic #: 1

Harry 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. What is the estimate at completion for this project that Harry will need to report to management?

A. $1,312,504
B. $787,504
C. $1,812,498
D. $725,000

Show Suggested Answer

Suggested Answer: C 🗳️
The estimate at completion can be calculated by dividing the budget at completion by the cost performance index. Here,

CPI =EV/AC -
= (0.40*2,208,456)/725000
= 1.21846

EAC = BAC/CPI -
= 2,208,456/1.21846
= 1,812,498
What is Estimate at Completion (EAC)? Estimate at Completion (EAC) is a field that displays the final cost of the project including the actual costs and the forecast of remaining costs based on the cost performance index (CPI) so far. The formula used to calculate this estimate is as follows: ACWP+(BAC-BCWP)/CPI

by aleemulislam at Sept. 2, 2020, 2:06 p.m.

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aleemulislam

7 months, 4 weeks ago

As per the question, management seems worried that the project is over-budget, however as per the CPI & answer the project is under-budget.

upvoted 1 times

Mopar

7 months, 3 weeks ago

That's not the question, the question is that is the estimate at completion...

upvoted 1 times

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Exam PMI-SP topic 1 question 61 discussion

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aleemulislam

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