PK0-005 Project Life Cycle Practice Question
A project has a budget at completion (BAC) of $200,000. The earned value (EV) is $100,000, actual cost (AC) is $120,000, and planned value (PV) is $90,000. What is the estimate at completion (EAC) if the project will continue to perform at the current cost performance index (CPI)?
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
✓
$240,000
CPI = EV/AC = 100,000/120,000 = 0.833. EAC = BAC/CPI = 200,000/0.833 = 240,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$200,000
Why it's wrong here
That equals BAC, but CPI is less than 1.
- ✗
$220,000
Why it's wrong here
Incorrect calculation.
- ✗
$260,000
Why it's wrong here
Incorrect calculation.
- ✓
$240,000
Why this is correct
EAC = BAC/CPI = 200,000 / (100,000/120,000) = 240,000.
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