The sponsor is asking for the Estimate at Completion (EAC), which represents the " expected total costs based on its progress. " This is a core component of Earned Value Management (EVM) as described in the PMBOK Guide.
* Forecasting with EAC: The Estimate at Completion (EAC) is the forecasted total cost of the project at its conclusion. When the sponsor asks for this " based on progress, " they are assuming that the project ' s past performance (represented by the CPI) will continue into the future.
* The Formula ($EAC = BAC / CPI$ ): This is the most common formula used to determine the total expected cost if the current cost performance is expected to persist for the remainder of the project.
* BAC (Budget at Completion): The original total budget.
* CPI (Cost Performance Index): A measure of cost efficiency ($EV / AC$).
* Alternative Assumptions: If the remaining work is expected to be performed at the budgeted rate (regardless of past performance), the formula would be $EAC = AC + (BAC - EV)$. However, the question specifically mentions " based on its progress, " which points toward using the performance index (CPI).
Analysis of Other Options:
* A. Earned value (EV) / actual cost (AC): This is the formula for the Cost Performance Index (CPI).
While it measures progress/efficiency, it is a ratio, not the " expected total cost. "
* B. Estimate at completion (EAC) - AC: This formula results in the Estimate to Complete (ETC), which represents the expected cost of the remaining work, not the total cost.
* D. EV - planned value (PV): This is the formula for Schedule Variance (SV), which measures schedule performance in currency units, not expected costs.