Need help on a question on TCPI

Submitted by nidhitripathi on Wed, 08/03/2011 - 01:51

Hi All,


Encountered this question on Free PM Exam Simulator and am not able to get to the answer they have posted.


Here is the question:


You are managing a construction project and your project budget is $20,000. You have spent $17,000 so far and the project is 75% complete. A new project budget of $25,000 has been approved. What should be your cost performance if you want to complete the project within the new approved budget?


Options: (1) 1.667 (2) 0.882 (3) 0.625 (4) 0.521


Ans: (3) - 0.625.


Would appreciate if anyone could help with this.


Thanks


Nidhi

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admin

Wed, 08/03/2011 - 04:24

Check this page , you should be able to figure out the answer

http://www.pmzilla.com/tcpi

sili18

Wed, 08/03/2011 - 17:35

I believe the answer should be 0.882


Follow my analysis... let me know if that has any wrong..


Cost Performance = EV/AC


Here you have AC as $17000


Need to calculate the EV. EV should be the %Completion multiplied by BAC. So it should be 75% of $20000 which is $15000.


So CPI = $15000/$17000 = 0.882


 

nidhitripathi

Wed, 08/03/2011 - 19:23

I did the same thing but the answer posted by the site is not 0.882.

aaron

Thu, 08/04/2011 - 16:52

Here you are being asked to calculate the TCPI using the formula BAC-EV/EAC-AC

Please note EAC in denominator because of revised budget.

so TCPI is 20K - 15K/25K-17K = 5000/8000 = .625

 

 

 

nidhitripathi

Thu, 08/04/2011 - 17:18

Thanks a lot! This really helps!