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PMI-SP Exam - Topic 5 Question 33 Discussion

You are the project manager of the NHQ project. Your project has a budget of $1,258,456, and isscheduled to last for three years. Your project is currently forty percent complete though it shouldbe forty-five percent complete. In order to reach this point of the project, you have spent $525,000.Management needs a performance report regarding the NHQ project. Management is concernedthat this project will be over budget upon completion. Management would like to create a reporttelling them how much more the project will need to complete. What value should you tellmanagement?
B) $787,504
A) $566,305
C) $1,312,504
D) $733,456

PMI-SP Exam - Topic 5 Question 33 Discussion

Actual exam question for PMI's PMI-SP exam
Question #: 33
Topic #: 5
[All PMI-SP Questions]

You are the project manager of the NHQ project. Your project has a budget of $1,258,456, and is

scheduled to last for three years. Your project is currently forty percent complete though it should

be forty-five percent complete. In order to reach this point of the project, you have spent $525,000.

Management needs a performance report regarding the NHQ project. Management is concerned

that this project will be over budget upon completion. Management would like to create a report

telling them how much more the project will need to complete. What value should you tell

management?

Show Suggested Answer Hide Answer
Suggested Answer: B

The project will need $787,504 more to complete. This formula, the estimate to

complete, is estimate at completion minus the actual costs.

Here,

CPI = EV/AC =(0.40*1,258,456)/525000= 0.95882, and

ETC = EAC - AC

= (BAC/CPI) - AC

=(1,258,456/0.95882) - 525000

= 1,312,504- 525000

= 787,504

The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a

scheduled activity, a group of activities,

or the project. ETC helps project managers predict what the final cost of the project will be upon

completion. The formula for the ETC is EAC-

AC. The EAC is BAC/CPI.

Answer option C is incorrect. This is the estimate at completion.

Answer option A is incorrect. This is the planned value.

Answer option D is incorrect. This is not a valid value based on the current project performance.


by Ernest at May 03, 2022, 11:29 AM

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Janessa
10 months ago
Totally agree, we need to keep a closer eye on expenses!
upvoted 0 times
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Leonardo
11 months ago
Wait, how did we end up behind schedule? This doesn't look good.
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Goldie
11 months ago
I calculated it, and I think the answer is $733,456.
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Dulce
11 months ago
We should be at 45% completion, but we're only at 40%.
upvoted 0 times
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Bobbie
11 months ago
The budget is $1,258,456 and we've spent $525,000 so far.
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Winfred
11 months ago
This reminds me of a practice question where we had to determine the remaining budget based on the earned value. I hope I can apply that here!
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Leonie
11 months ago
I'm not entirely sure, but I feel like the percentage completion should factor into how much more we need.
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Verdell
11 months ago
I think we might need to find the Cost Performance Index (CPI) first to get a clearer picture of the budget situation.
upvoted 0 times
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Anabel
11 months ago
I remember something about calculating the Estimate at Completion (EAC) and how to assess the budget based on the current spending.
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Shizue
12 months ago
Okay, let me break this down step-by-step. The key is understanding the requirements for disclosure with a subpoena.
upvoted 0 times
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Olive
12 months ago
Okay, I think I've got this. The key is to use the pagination functionality and the beforeMessage property to recursively call the /v1/messages endpoint. That way, I can retrieve all the messages for the month without hitting any API limits.
upvoted 0 times
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Kenneth
12 months ago
I feel like all these commands are very similar, but I can't recall whether the context matters—do we definitely need to be in role configuration for option A or D?
upvoted 0 times
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Lettie
12 months ago
This looks like a straightforward dividend valuation model question. I'll need to calculate the cost of equity using the given information.
upvoted 0 times
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