# EAC formula qn

Can anybody help me with solving below qn with justification please?

 Your project sponsor has asked you for a status report of your project, you are required to include Estimate at Completion information in the report based on the following data. What would be the EAC?  Actual cost of the project = \$ 350,000  Budget at completion of the project = \$ 500,000  Earned value= \$250,000

### I guess if nothing is

I guess if nothing is mentioned in the question about the varainces, we should consider it as TYPICAL variance.

Hence EAC = BAC / CPI

CPI = EV / AC = 250000 / 350000 = 0.714

EAC = 500000 / 0.714 = 700280.11

Regards,

Arun.

700000

### Explanation given

Explanation given as:

CPI=EV/AC
= 250,000/350,000=0.714
EAC= AC + (BAC-EV)/CPI (is this a valid formula? )
= 350,000+ (500,000-250,000)/0.714
= 350,000+ (250.000)/0.714
= 700,000

Can you guys help me here?

### Hi BK, This is same as the

Hi BK,

This is same as the formula which I have mentioned.

EAC = AC + (BAC-EV)/CPI is the formula that was given in PMBOK guide third edition.

In fourth edition, the same formula is simplified to EAC = BAC / CPI. Both the formulae are correct.

Kindly refer this url which clearly derives the eauation.

http://www.deepfriedbrainproject.com/2010/01/solving-estimate-at-completion-puzzle.html

Regards,

Arun.

thanks..

### Hi BK,Can I have 4 options

Hi BK,

Can I have 4 options for this question?

\$ 516,000

\$ 155,000

\$ 700,000

\$ 850,000

Fyi..

### Tahnks BK And correct ans is

Tahnks BK

And correct ans is \$700,000?

yes