Your project has a BAC of $750,000 and is 75 percent complete. According to your plan, however,
your project should actually be 80 percent complete. You have spent $575,000 of your project
budget to reach this point and you are worried about the project not being able to complete based
on your current project budget. What is the to-complete performance index for this project?

A.
0.98

B.
-$16,677

C.
1.07

D.
0.94

Explanation:
The to-complete performance index can be found by using the formula (BAC-EV) /( BAC-AC) for a
value of 1.07. The higher the value is from 1, the less likely the project will meet the BAC.
To-complete Performance Index (TCPI) is the measured projection of the anticipated performance
required to achieve either the BAC or the EAC.
TCPI indicates the future required cost efficiency needed to achieve a target EAC (Estimate At
Complete).Once approved, the EAC supersedes the BAC as the cost performance goal. Any
significant difference between TCPI and the CPI needed to meet the EAC should be accounted for
by management in their forecast of the final cost. The formula for TCPI is as follows:
TCPI = {(BAC-EV) /( BAC-AC)}
Answer option A is incorrect. 0.98 is the project’s cost performance index.
Answer option D is incorrect. This is the project’s schedule performance index.
Answer option B is incorrect. -$16,667 is the project’s variance at completion.