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NEW QUESTION: 1
Amy works as a project manager for BlueWell Inc. She is working on the SDI project, which has a BAC of
$2,816,000. She is currently 20 percent complete with this project, though she should be 25 percent complete with the project work. The project has consumed $495,000 of the project budget to date.
Management has asked her the project's Estimate To Complete (ETC) based on the current project performance. What is the ETC for this project?
A. $1,541,544
B. $2,474,952
C. $1,312,504
D. $1,979,952
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The estimate to complete is about knowing how much more money the project will need to complete its objectives. The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC- AC. The EAC is BAC/ CPI. Here it is, CPI = EV/AC
= (0.20*2,816,000)/495,000
= 563200/495,000
= 1.1378
EAC = BAC/ CPI
= 2,816,000/1.1378
= 2,474,952 (Approx)
ETC = EAC - AC
= 2,474,952 - 495,000
= 1,979,952
Incorrect Answers:
A, C: These are not the valid answers for this question.
D: This is the estimate at completion based on the current project performance.

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