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TOPIC: Important Free PMP Exam Sample Question of the Week

Free PMP Exam Sample Question of the Week 3 years 1 month ago #4630

  • Anne B
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You are managing a construction project and your project budget is $20,000. You have spent $17,000 so far and the project is 75% complete. A new project budget of $25,000 has been approved. What should your cost performance be if you want to complete your project within the new approved budget?

A. 1.667
B. 0.882
C. 0.625
D. 0.521

Hint: Calculate the TCPI based on EAC.

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Answer and Explanation:

The Correct Answer is C.

Since the BAC = $20,000 and the project is 75% complete, the EV = (BAC x % complete) = $15,000. Now you need to calculate your desired future cost performance, you should calculate the TCPI based on EAC by using the formula TCPI = (BAC-EV)/(EAC-AC) = (20,000 - 15,000) / (25,000 - 17,000) = 5,000/8,000 = 0.625.
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