PK0-005 Tools and Documentation Practice Question
A project has a BAC of $100,000. The earned value is $40,000, actual cost is $50,000, and planned value is $30,000. What is the estimate at completion (EAC) assuming the current cost performance is expected to continue?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$125,000
EAC = BAC/CPI. CPI = EV/AC = 40,000/50,000 = 0.8. So EAC = 100,000/0.8 = $125,000. This reflects that the project will likely exceed the original budget.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$110,000
Why it's wrong here
110,000 might be AC + (BAC - EV) = 50,000 + 60,000, but that's for atypical variance.
- ✗
$75,000
Why it's wrong here
75,000 might be BAC - EV, not correct for this formula.
- ✗
$90,000
Why it's wrong here
90,000 does not come from standard EAC calculation.
- ✓
$125,000
Why this is correct
Correct. EAC = BAC/CPI = 100,000/0.8 = 125,000.
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