PK0-005 Project Life Cycle Practice Question
A project has a budget at completion (BAC) of $200,000. The actual cost (AC) is $80,000, earned value (EV) is $60,000, and planned value (PV) is $90,000. What is the estimate at completion (EAC) if the project will continue to perform at the same cost efficiency?
⚠ Common exam trap
The trap is picking the wrong EAC formula — candidates often use EAC = AC + (BAC − EV) = 80,000 + 140,000 = $220,000 (option A) instead of the CPI-based formula, because they miss the phrase 'same cost efficiency' which mandates EAC = BAC / 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
✓
$266,667
The estimate at completion (EAC) when the project continues at the same cost efficiency is calculated as EAC = BAC / CPI. First compute CPI = EV / AC = 60,000 / 80,000 = 0.75. Then EAC = 200,000 / 0.75 = $266,667. 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.
- ✗
$220,000
Why it's wrong here
$220,000 comes from AC + (BAC − EV), which assumes all remaining work is performed at the budgeted rate. That is the atypical-variance formula; the stem specifies the current cost efficiency continues, requiring BAC ÷ CPI instead.
- ✗
$250,000
Why it's wrong here
$250,000 applies EAC = BAC ÷ CPI only if CPI were 0.8, but CPI here is 60,000 ÷ 80,000 = 0.75, giving $266,667. The figure is tempting because dividing BAC by a rounded CPI is the standard formula when cost efficiency is expected to persist.
- ✗
$200,000
Why it's wrong here
$200,000 simply restates the budget at completion, ignoring the cost overrun already incurred. It would be the answer only if the question asked for EAC assuming remaining work proceeds at the original planned rate, i.e. EAC = AC + (BAC − EV).
- ✓
$266,667
Why this is correct
Using the cost performance index (CPI) to extrapolate future spending satisfies the stem's constraint that the project continues at the same cost efficiency. CPI is EV ÷ AC = 60,000 ÷ 80,000 = 0.75, so EAC = BAC ÷ CPI = 200,000 ÷ 0.75 = $266,667.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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