PK0-005 Project Life Cycle Practice Question
A project has a budget at completion (BAC) of $200,000, earned value (EV) of $120,000, and actual cost (AC) of $130,000. What is the estimate at completion (EAC) if the cost performance is expected to continue?
⚠ Common exam trap
PK0-005 often tests the choice between EAC formulas — candidates must read whether the variance is 'typical' (continue) or 'atypical' (one-time) to select BAC/CPI versus AC + (BAC - EV).
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
✓
$216,667
EAC = BAC / CPI when cost performance is expected to continue. CPI = EV / AC = 120,000 / 130,000 = 0.9231. EAC = 200,000 / 0.9231 = 216,667. This matches option D.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$230,000
Why it's wrong here
EAC equals BAC divided by CPI, giving $200,000 / 0.923 = $216,667, not $230,000. It is tempting because adding the cost variance to BAC is a recognised EAC variant, but that formula applies only when the original estimate is flawed, not when current cost performance continues.
- ✗
$210,000
Why it's wrong here
EAC equals BAC divided by CPI, giving $200,000 / 0.923 = $216,667, not $210,000. It is tempting because it resembles BAC plus a small overrun, but the continuing-performance formula divides BAC by CPI (0.923), and $210,000 matches no valid EAC calculation here.
- ✗
$220,000
Why it's wrong here
EAC equals BAC divided by CPI, giving $200,000 / 0.923 = $216,667, not $220,000. It is tempting because it sits close to the true figure, but it corresponds to no standard formula; the continuing-performance case uses BAC / CPI, while BAC minus remaining variance uses a different basis.
- ✓
$216,667
Why this is correct
With cost performance expected to continue, EAC equals BAC divided by the cost performance index (CPI). Here CPI is EV/AC = 120,000/130,000 ≈ 0.9231, so EAC = 200,000/0.9231 ≈ $216,667. This satisfies the stem's assumption of ongoing variance, unlike the atypical-variance formula.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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