Hi
Can any one explain, why PV= 250,000X2 = 500,000 and SPI is not considered in below calculation.
I tried to use formula EAC= BAC/(SPI* CPI)
Please advise....
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Question: You are working on a 12 month assignment to build a website with 4,000 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
Correct Choice: 4
Justification
The default value of EAC (assuming current variances are typical) is calculated as below:
CPI = EV/AC
CPI = $400,000 / $800,000
CPI = 0.5
EAC = BAC/CPI
EAC = $1,000,000/0.5
EAC = $2,000,000
So, ETC = EAC – AC = $2,000,000 – $800,000 = $1,200,000
Reference: PMstudy.com comments
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