C is the best answer

B although the statement is correct (the CPI of 1.25 is high), but it doesn't answer the question whether the critical requirement will be delivered on time or not.
A i s wrong because SPI is 1.02 not 1.05
D is wrong because a positive SV means the project is ahead of schedule (this is project metric, it doesn't report the status of that specific requirement that should be delivered in 2 weeks).

having said that, the exam real questions will be more straightforward and more clear

"There is a critical deliverable due to the federal government in two weeks".

Is this critical deliverable on track?

He can have CPI,SPI>1 CV,SV positive ... But this is for overall project....

"If you miss the deliverable, you could lose the entire contract"....

Hi - the below is a question from RITAs Fastrack. I think the answer should be d) since the calculated SPI is 10 million. However the stated answers is (c). Why would the sponsor need more data when we can confirm that the schedule variance is positive and that project is on schedule ?

Your boss is worried about the project schedule. There is a critical deliverable due to the federal government in two weeks. If you miss the deliverable, you could lose the entire contract. To help reduce the boss's stress, you show him the earned value calculations you just completed. They show your cost performance index (CPI) is 1.25, your actual cost (AC) is US $400 million, and your planned value (PV) is US $490 million. Should your boss be comfortable?
A. Yes, your SPI is 1.05.
B. No, your CPI is too high.
C. He needs more data.
D. Yes, your SV is $10 million.