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NEW QUESTION: 1
You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. The project has a total budget of $80,000 and CPI of .95. The project has spent $25,000 of its budget so far. How much more money do you plan to spend on the project?
A. $109,210
B. $84,210
C. $59,210
D. $80,000
Answer: C
Explanation:
This question is asking you to create a forecast using estimate to complete (ETC), which uses CPI to project how much money is likely to be spent for the rest of the project. The rst step is to plug the numbers into the formula EAC = BAC / CPI, which yields EAC = $80,000 / .95 = $84,210. That's how much money you're likely to spend on the project. Now you can figure out ETC = EAC - AC = $84,210 - $25,000 = $59,210.