uestion 11 - Qid 10046, Cost Management, Monitoring & Controlling, Control Costs
You are managing a project to install upgraded communications equipment for an emergency medical dispatch department within the local fire department and your project budget is $20,000. You have spent $17,000 so far and the project is 75% complete. A new project budget of $25,000 has been approved. What should your To Complete Cost Performance (TCPI) be if you want to complete your project within the new approved budget?
1.667
0.882
0.625
0.521
I can not solve above question? any help? Saving Changes...
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Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
The answer is .882. The key is to calculate the Earned Value based on the previous budget of $20,000, not the new budget of $25,000. This makes sense because the work was already completed under the old budget. Here are my calculations:
Budget at Completion (BAC) = 25,000 Actual Cost (AC) = 17,000 Earned Value (EV) = 75% of 20,000 = 15,000 Cost Performance Index (CPI) = EV / AC = 15,000/17,000 = .8823529
Estimate at Completion (EAC) = BAC/CPI 25,000/.8823529 = 28,333.23
The answer is .882. The key is to calculate the Earned Value based on the previous budget of $20,000, not the new budget of $25,000. This makes sense because the work was already completed under the old budget. Here are my calculations:
Budget at Completion (BAC) = 25,000 Actual Cost (AC) = 17,000 Earned Value (EV) = 75% of 20,000 = 15,000 Cost Performance Index (CPI) = EV / AC = 15,000/17,000 = .8823529
Estimate at Completion (EAC) = BAC/CPI 25,000/.8823529 = 28,333.23
I got the answer only now and I think the best answer is 0.625
Thanks mr. Sungjoon Park (you get it).
TCPI= (BAC-EV)/(BAC- AC) -----------------(BAC-EV)= work left to do ....is (5000)
(BAC- AC) = left Money .... is (8000)
Every day we still learning new things!!!
Thanks for sharing from all participants.
BR,
Mansour Saving Changes...
Math in the house, look at you all go! Saving Changes...
ahmed elzenysenior technical office engineer| elmadar eloula for consultingriyadah, Saudi Arabia
.882 Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
My recommendation, if you are preparing for the certification exam then use PMI´s AI tool because it is supposed it has the PMI knowledge in their base (something I do not have opportunity to validate because I asked lot of times but I did not received answers yet) Saving Changes...
