***EAC Calculation ****

 

Answer to the below question is ---> EAC = BAC - CV 

I did not understand the above formula , please advise ?

 

61. You are performing earned value technique on your project.

After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted.

In this case, which is the best formula to calculate EaC (Estimate at Completion)?
 

 

  EaC = BaC - CV
  EaC = BaC / CPI
  EaC = AC + BtC / CV
  You can not compute the EaC.

 

given:  EAC = BAC - CV -----  (1)


EAC = BAC -(EV-AC)  since CV=EV-AC ----    (2)


The formula (2) can be rewritten as below:


EAC = AC + (BAC- EV)


Hope you understand it now.


 

 Got it...