# EAC Calculation Question

As a project manager, you are required to produce project performance reports on a regular basis, your project`s Budget at Completion is $750,000, planned value is$100,000, schedule variance is $30,000, and cost variance is$50,000. What is the percentage complete and estimate at completion in your project?

Choice 1  18%, $500,000 Choice 2 17.33%,$ 461,538
Choice 3  17.8%, $437,500 Choice 4 18%,$ 437,500

Pawar, Hemanth - you analysis please?

Thanks

Jai

### Question is little

Question is little complicated.

PV = 100000

SV  = +30000

EV  = 130000

CV  = 50000

AC = 80000

At this piont of time work completed will be calculated based on BAC

thus

EV t / BAC  = 130000/750000 = 17.33 %

EAC , if calculated based on typical case will be = 461538  ( CPI = 130000/80000 = 13/8  , EAC = 750000/13/8 )

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Other options / other assumpsions are not matching

Thanks, Pawar

### B is correct

% complete is 17.33% and EAC is 461 538

You need to calculate the AC & EV first since EAC is BAC/CPI. and CPI = EV/AC these two are unknowns.

SV=EV-PV, SV is known and PV is known so we get EV

CV=EV-AC, since EV is known by above now need to substitue for CV and get AC,

So, EAC= BAC / CPI = 461538. In the above options 461538 is only option in B with 17.33 this should give definite answer. If there were two option then we would have gone % complete calculation as well.

Regards

CN Patil

### Good Question to know how to bring the other values

This is my first post in this forum.

Hi Jgrind07,

The values you have are

BAC=750,000

PV=100,000

SV=30,000

CV=50,000

1) Question 1 - asking % complete

% complete =(EV/BAC)*100

We need to calculate the EV

SV=EV-PV so EV=SV+PV=30,000+100,000=130,000(EV)

%complete=(130,000/750,000)*100=17.33%

Here itself you can select the option as Choice(2), where no other has choice has 17.33%.

2)  Question 2 - asking EAC.

If nothing is giving about variances you can consider this as typical.

As per the new formula

EAC=BAC/CPI

CPI=EV/AC

To calculate AC

CV=EV-AC

AC=EV-CV=130,000-50,000=80,000

so CPI=130,000/80,000=1.625

Therefore EAC=750,000/1.652=461538.46

this confirms Choice(2).

-Regards

SM

### Excellent Explaination,

Excellent Explaination, Sriram. I'm happy that you have started your 1st posting with my questions.

Thanks

Jai

### Answer is Choice B GivenBAC =

Given
BAC = 750
PV = 100
SV = 30
CV = 50

%Complete = ?
EAC = ?

Solution

SV = EV - PV
30 = EV - 100
EV = 130

CV = EV - AC
50 = 130 - AC
AC = 80

CPI = EV / AC
CPI = 130/80
CPI = 1.625

EAC = BAC/CPI
EAC = 750/1.625
EAC = 461.53846

EV = BAC * %Completed
130 = 750 * %Completed
%Completed = 130/750 = 17.3333%

### Thanks, all. I was able to

Thanks, all.

I was able to understand the upto % calculation portion and concluded the correct choice. I was struggling to understand how the EAC was derived. Also, I understood that I was using the wrong EAC formula based on your explanation.  Here there is no information on atypical or typical and so you used the formula EAC = BAC/CPI.

The following is the solution explained in the mock exam which is different from how you calculated the EAC.

EAC= AC + (BAC-EV)/CPI
= 80,000 + (750,000 – 130,000)/1.625
= 80,000+(620,000)/1.625
= 461,538

Is EAC= AC + (BAC-EV)/CPI another EAC formula to remember?

What are the other formulas that is out side of PMBOK will help?

Thanks

Jai

### Havee seen below 3 formula's

Havee seen below 3 formula's online, not sure if they are in PMBOK 4?

1. EAC= AC + (BAC-EV)/CPI

2. EAC= AC + (BAC-EV)/SPI

3. EAC= AC + (BAC-EV)/(CPI*SPI)

Can any one suggest?

### We have  EAC= AC +

We have  EAC= AC + (BAC-EV)/(CPI*SPI) in PMBOK.

### Can you use a calculator during the test?

Are calculators allowed in PMP test? I'm taking the test on Saturday and need to know asap.

thanks

### Yes, soft calculator (windows

Yes, soft calculator (windows calculator) will be provided.

### Can you use a calculator during the test?

Are calculators allowed in PMP test? I'm taking the test on Saturday and need to know asap.

thanks

### Just now I have seens this on

Just now I have seens this on the net:

Estimate at completion (EAC)

EAC is the manager's projection of total cost of the project at completion.
\begin{align} EAC = AC + {(BAC-EV)\over CPI} = {BAC \over CPI} \end{align}

### Thanks, CrushPMP.

Thanks, CrushPMP. Which online source you are referring to EVM, Forcast problems? Can you share it?

Thanks

Jai