# 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)?

o \$1,800,000
o \$2,000,000
o \$2,200,000
o \$2,400,000

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?

### Yes , It is like that

EAC = AC + ETC

CPI at current point  = EV/AC = 1000000/1200000

Trend will be same in future

ETC  = Remaining work  (BAC- EV) / CPI = 1000000/1000000/1200000 = 1200000

EAC = AC+ETC = 1200000+1200000 = 2400000, ans would be D

### Why *****/CPI*SPI will not here

When Planned deadline is a constraint or condition to complete project, and in any point of time , project is running ahead or behind with any SPI, along with any CPI, then in that case, you apply this formula for EAC :

EAC = AC + [(BAC-EV)/(SPI*CPI)]

But in question it not asked to complete at scheduled date.

hence formula will be applied only with CPI.

Regards

### yes, it didn't mention

yes, it didn't mention schedule factor. That's why I'm confused by the explanation of it. Thanks anyway.