Question

A project manager is halfway through a predictive construction project. The performance report shows a budget at completion (BAC) of $500,000, earned value (EV) of $200,000, actual cost (AC) of $250,000, and planned value (PV) of $240,000. The sponsor asks the project manager to forecast the total cost the project will require at completion, assuming the current cost performance trend continues for the remainder of the work. What should the project manager report?

Accepted Answer

$625,000, calculated as BAC divided by the current cost performance index

Answer

$500,000, because the BAC remains the authorized budget baseline

Answer

$550,000, calculated as AC plus the remaining planned value

Answer

$520,833, calculated as BAC divided by the schedule performance index