Question:

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

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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.