EAC (Estimate at Completion) Calulation

Submitted by Raavi on Sat, 12/11/2010 - 20:17

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


 

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sv

Sat, 12/11/2010 - 21:56

since this underestimation will influence the future


EAC= BAC/CPI


BAC-EV=1000000


EV=1000000 (GIVEN)


SO, BAC= 2000000


EAC=2000000/(10/12)


=2400000

cuongpt

Wed, 12/15/2010 - 09:02

Given:
PV: $1,200,000, EV: $1,000,000, AC: $1,200,000
BAC - EV = $1,000,000

Neet to calculate:
EAC= BAC/CPI
---
BAC - EV = $1,000,000 => BAC = EV + $1,000,000 = $2,000,000

CPI=EV/AC= $1,000,000/$1,200,000 = 1/1.2

---
EAC = 2,000,000x1.2 = 2,400,000

Sandy10001

Wed, 08/20/2014 - 15:57

Yes, I agree with the others.

ruthkim

Wed, 08/20/2014 - 20:40

Key is to know to use the EAC=BAC/CPI formula. Agree with the math as shown in other comments :)

Frances Tessler

Wed, 08/20/2014 - 20:59

2,400,000