Calculate Estimated cost while SV and CV are given

Submitted by samy001us on Wed, 05/19/2010 - 04:03

 The schedule variance for a project is 20%.The Budget for the project is $480,000. What is the estimated cost on project completion if the EV and AC of the project currently is $48,000 and $60,000 respectively and if the current cost variance and schedule variance is expected to continue in future?













 


 


Kindly help

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chowdary2104's picture

chowdary2104

Wed, 05/19/2010 - 04:41

 


Key Point: Current Vairance is expected to continue in future. Then here is the formula for EAC:


EAC = BAC/CPI


First Calculate CPI = 48,000/60,000 = 0.8


You know the BAC = 480,000


Then apply the formula: EAC = 480,000/0.8 = 600,000.


So answer is 'B'


Regards,


Lakshmi VR Chowdary A