A project has EV = $80,000, AC = $100,000, and BAC = $200,000. What is the Estimate at Completion (EAC) assuming current CPI continues?

Question

Project Management (PMP) — Hard

A project has EV = $80,000, AC = $100,000, and BAC = $200,000. What is the Estimate at Completion (EAC) assuming current CPI continues?

Accepted Answer

To calculate the Estimate at Completion (EAC), we use the formula EAC = AC + (BAC - EV) / CPI. Given EV = $80,000, AC = $100,000, and BAC = $200,000, we first find CPI = EV / AC = $80,000 / $100,000 = 0.8. Then, EAC = $100,000 + ($200,000 - $80,000) / 0.8 = $250,000. Other options are incorrect due to miscalculation of CPI or incorrect application of the EAC formula.