Oliver Lehman Sample Question - How to Calculate

Please advise on how Selection D is the correct answer.  I keep coming up with $2,200,000.

Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline:

PV= $1,200,000  EV= $1,000,000  AC= $1,200,000

You expect the underestimation to influence the future as much as it did in the past.

If the value of the remaining work (BAC-EV) is at $1,000,000, what should be your new EAC (Estimate At Completion)?

A. $1,800,000

B. $2,000,000

C. $2,200,000

D. $2,400,000

 

ETC=BAC-EV

ETC=1000000

BAC = 2000000

CPI = EV/AC =  .8333

EAC = BAC/CPI = Hence = D is correct