A project has a Budget at Completion (BAC) of $500,000, Earned Value (EV) of $200,000, and Actual Cost (AC) of $250,000. What is the To-Complete Performance Index (TCPI) based on the BAC?
1.2
1.5
0.6
0.8
The correct answer is 1.2. To calculate the TCPI based on BAC, we use the formula: TCPI = (BAC - EV) / (BAC - AC). Plugging in the values: TCPI = (500,000 - 200,000) / (500,000 - 250,000) = 300,000 / 250,000 = 1.2. This result indicates that the project team needs to achieve a cost performance index of 1.2 for the remaining work to complete the project within the original budget (BAC). A TCPI greater than 1 suggests that the project is currently over budget, and the team needs to improve their cost efficiency to meet the BAC target.
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