TOPIC: Question EVM question

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Question No : 165

You are working on a 12 month assignment to build a website with 4000 pages for $ 1,000,000. You are supposed to spend $ 250,000 every 3 months. After 6 months, you determine that only $ 400,000 of work is completed and cost incurred is $ 800,000. What is the ETC?


Choice 1 $ 2,000,000

Choice 2 $ 1,500,000

Choice 3 $ 1,000,000

Choice 4 1,200,000


Any thoughts?

$1.2M (4th answer). Calculate the EAC which is 2M and subtract actual cost $800K and you get $1.2M. Good luck.

EAC= AC + (BAC-EV)/CPI = $800,000 + ($ 1,000,000 - $ 400,000)/($ 400,000 / $ 800,000) = $ 800,000 + ($ 600,000/0.5) = $ 2,000,000
ETC = EAC – AC = $ 2,000,000 - $ 800,000 = $ 1,200,000

Another way is to directly use (BAC-EV)/CPI without calculating EAC - where Actual Cost is added first and then subtracted.