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TOPIC: Free PMP® Exam Sample Question

Free PMP® Exam Sample Question 4 months 3 weeks ago #20790

  • Arjie Maghanoy
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You are managing a renovation project of a vintage house which is to be completed in 12 months at a budget of $100,000. You are 6 months into the project, and you have spent $60,000, but only 40% of the work is completed. How much more will it cost to complete the renovation if the cost performance remains unchanged?

A. $171,940
B. $120,000
C. $149,254
D. $89,254
HINT: Determining how much more it will cost to finish the project is the ETC.

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Answer and Explanation
The correct answer is D

The total budget or BAC is $100,000. The cost so far or AC is $60,000. You have completed 40% of the work which is the EV or 40% of $100,000 or $40,000. The question is asking for the cost to complete the renovation or the ETC. The remaining calculations are as follows:

ETC = EAC - AC

EAC = BAC / CPI

CPI = EV / AC or 40,000 / 60,000 = 0.67

EAC = 100,000 / 0.67 = 149,254

ETC = 149,254 - 60,000 = 89,254 or the cost required to complete the renovation.


Details for each option:

A. $171,940
Incorrect. The question is looking for the ETC or the cost required to complete the project. This value represents the EAC using the formula EAC = AC +[(BAC - EV) / (CPI x SPI)].

B. $120,000
Incorrect. The question is looking for the ETC or the cost required to complete the project. This value represents the EAC using the formula EAC = AC + BAC - EV.

C. $149,254
Incorrect. The question is looking for the ETC or the cost required to complete the project. This value represents the EAC using the formula EAC = BAC / CPI.

D. $89,254
Correct. The cost required to complete the project is $89,254. The value was derived using ETC = EAC - AC utilizing the formula EAC = BAC / CPI to calculate EAC.

Reference: A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017, Page(s) 267
The following user(s) said Thank You: Elena Mekhanoshina
Last edit: by Arjie Maghanoy.

Free PMP® Exam Sample Question 4 months 2 weeks ago #20858

  • Mike
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LOL...You said correct option is B and then did all the explanation to say correct answer is D. Seems very focused.

Free PMP® Exam Sample Question 4 months 2 weeks ago #20865

  • abdu jemal
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please send me your document

Free PMP® Exam Sample Question 4 months 2 weeks ago #20869

  • Arjie Maghanoy
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Hello Mike,

Yes, you're right! The answer is D. Thank you for letting me know. I didn't notice that it was B and not D. Keep safe man!

Free PMP® Exam Sample Question 4 months 2 weeks ago #20881

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so you guys control the replies here to look clean. Scary.....
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