Amy works as a project manager for BlueWell Inc. She is working on the SDI project, which has a
BAC of $2,816,000. She is currently 20 percent complete with this project, though she should be
25 percent complete with the project work. The project has consumed $495,000 of the project
budget to date. Management has asked her the project’s Estimate To Complete (ETC) based on
the current project performance. What is the ETC for this project?

A.
$1,312,504

B.
$1,979,952

C.
$1,541,544

D.
$2,474,952

Explanation:
The estimate to complete is about knowing how much more money the project will need to
complete its objectives. 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. Here it is,
CPI = EV/AC

= (0.20*2,816,000)/495,000
= 563200/495,000
= 1.1378
EAC = BAC/ CPI
= 2,816,000/1.1378
= 2,474,952 (Approx)
ETC = EAC – AC
= 2,474,952 – 495,000
= 1,979,952
Answer options C and A are incorrect. These are not the valid answers for this question.
Answer option D is incorrect. This is the estimate at completion based on the current project
performance.