## Completion Costs

An ongoing project just crossed a milestone with a current cost of $3,500. The original budget baselined $3,000 to reach this checkpoint, and allocated $5,000 total to completely close out the effort. What is the projected estimation cost at project completion? At the current rate, how much will the project be over budget?

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__**Hint**

**Hint**

Cost Performance Index = ratio of earned value over how much we actually spent to date. A ratio of 1 means we are on track. A ratio of <1 means we are running behind, and a ratio of >1 means we are ahead.

$$$ETC=\frac{(BAC-EV)}{CPI}$$$

ETC = Estimated Cost to Completion

BAC = Budget at Completion (baseline)

EV = Earned Value

CPI = Cost Performance Index

First, let's calculate the Cost Performance Index, which is a ratio of earned value divided by how much we actually spent.

$3,000 / $3500 = 0.857

Since our ratio is <1, we are running a bit behind.

Next, let's determine the remaining estimated cost to completion using the equation in the hint section.

($5,000 - $3,000) / 0.857 = $2,333.72

Total estimated cost at completion (how much we spent + our projected remaining costs):

$3,500 + $2,333.72 = $5,833.72

Finding the extra cost at the current rate:

$5,833.72 - $5,000 = $833.72

Total Estimated Cost at Completion = $5,833.72

Extra Cost at Current Rate = $833.72