TOPIC: Free PMP® Exam Sample Question

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

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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

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

please send me your document

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!

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