Quick Answer
The answer is $1,219,512. This is the correct estimate at completion (EAC) when the current cost performance index (CPI) of 0.82 is considered typical of future performance, because the formula for this scenario is EAC = BAC / CPI. Since the project is at its midpoint with a planned value (PV) of $500,000, the budget at completion (BAC) is derived as $1,000,000, and dividing by the CPI yields the forecast. On the Project Management Professional (PMP) exam, this tests your ability to select the right EAC formula based on the assumption given—here, “typical” means the same efficiency continues, so you use the simple CPI-based formula rather than adding the SPI. A common trap is to mistakenly use the formula for atypical performance (EAC = AC + (BAC – EV)) when the question explicitly states the CPI is typical. For a quick memory tip: when the CPI is “typical,” think “Typical = Total cost divided by CPI,” or simply remember that a typical CPI means you keep dividing the budget by it.
This PMP practice question tests your understanding of process — managing technical aspects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your project is using a predictive approach, and you are at the midpoint. The earned value analysis shows: EV = $450,000, PV = $500,000, AC = $550,000. The CPI is 0.82 and SPI is 0.90. The sponsor asks for a forecast of the total cost at completion. What is the best estimate for EAC assuming the current cost performance is typical of future performance?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
$1,219,512
EAC = BAC/CPI = 1,000,000/0.82 ≈ $1,219,512, assuming typical cost performance.
$1,250,000
Why wrong: Incorrect calculation.
$1,100,000
Why wrong: This does not use the formula correctly.
$1,050,000
Why wrong: Not aligned with standard EVM formulas.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
$1,219,512
When current CPI is expected to continue, the formula EAC = BAC/CPI is appropriate. BAC is not given but can be derived: BAC = PV * 2 = $1,000,000. So EAC = $1,000,000 / 0.82 ≈ $1,219,512.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
$1,219,512
Why this is correct
EAC = BAC/CPI = 1,000,000/0.82 ≈ $1,219,512, assuming typical cost performance.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
$1,250,000
Why it's wrong here
Incorrect calculation.
$1,100,000
Why it's wrong here
This does not use the formula correctly.
$1,050,000
Why it's wrong here
Not aligned with standard EVM formulas.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
The correct answer is: $1,219,512 — When current CPI is expected to continue, the formula EAC = BAC/CPI is appropriate. BAC is not given but can be derived: BAC = PV * 2 = $1,000,000. So EAC = $1,000,000 / 0.82 ≈ $1,219,512.
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 2026
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.
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