Question 108 from Oliver Lehmann 175Qs
108. Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline: PV: $1,200,000, EV: $1,000,000, AC: $1,200,000 You expect the underestimation to influence the future as much as it did in the past. If the value of the remaining work (BAC – EV) is at $1,000,000, what should be your new EAC (estimate at completion)?
Answer says to use "EAC forecast for ETC work considering both SPI and CPI factors", i.e. AC + [(BAC-EV)/CPI*SPI]. Why? The question's scenario seems not to meet the application condiction of the formula. I think the other formula is more suitable: AC + [(BAD-EV)/CPI]. Do you thinks so?