Cathy is the project manager of the NNQ Project. She currently has completed 45 percent of the
project but was scheduled to have 65 percent of the project completed. This project has a budget
of $344,000 and was scheduled to last four months. Cathy has spent $198,998 to date on the
project. Based on this information, what is the estimate at completion for the NNQ Project?

A.
-$98,217.78

B.
-$44,198

C.
$441,025.64

D.
$243,219.78

Explanation:
The estimate at completion (EAC) formula is the Budget at Completion (BAC)/Cost Performance
Index (CPI). In this instance, the CPI is .78 and the BAC is $344,000. Cathy’s project isn’t doing
too well.
Answer option D is incorrect. This value represents the estimate to complete for the project.

Answer option B is incorrect. This value represents the negative cost variance.
Answer option A is incorrect. This value represents the negative value the project will have once
all the work is completed.