Qustion on CV

Can someone please explain the below question and answer?

If EV = 50; PV = 60; AC = 55 and the current cost performance is likely to continue into the future, what is the likely variation in the overall cost at the end of the project?

a.Insufficient information

Answer (b) Based on the EV and AC values, it seems that there is a 10% escalation in the cost. Given that this trend is likely to continue in the future, the project will also end up with a 10% cost escalation

admin's picture

Questions and answer explanation given seems to be enough. There is 10% variation in cost which is likely to continue as per the question. So at the end of the project there will be 0.1 cost variation which is 10%.

Assume BAC = X

CPI=EV/AC=50/55 = 0.90

EAC= X/.90

VAC = x- x/.90

VAC = (.90 X -X)/.90 = X(.90-1)/.90 = X(.10/.90) = 0.11=11%

your options looks wrong.
Look a,b,b,d and both options having 0.1

Thanjks Sudku I got it