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TCPI (to meet BAC) = (BAC − EV) ÷ (BAC − AC). Substituting: (1,000,000 − 400,000) ÷ (1,000,000 − 500,000) = 600,000 ÷ 500,000 = 1.20. A TCPI of 1.20 means the remaining work must be accomplished at 20% better cost efficiency than the project has achieved to date (CPI so far = EV/AC = 0.80). This is a challenging target and signals the need for strong corrective action: tighten change control, address drivers of inefficiency (rework, supplier performance, resource mix), and consider trade-offs in scope, quality, or schedule. If leadership instead approves a revised EAC, the alternative formula TCPI(EAC) = (BAC − EV) ÷ (EAC − AC) applies, which usually yields a lower (more achievable) index. CAPM EVM objectives require interpreting indices, selecting appropriate forecasts, and communicating implications transparently so stakeholders understand feasibility and risk of recovery plans before committing to them.