eac question

hi all


i found one question regarding eac calculation that the answers contains 2 answers.


eg:$20, $1.666


$40, $1.666


$60, $1.666


$80, $1.666


can anybody let me know where i can find samples for the above?


appreciate your help!


 

admin's picture

What is the question ?

Can u plz post the question in the forum....

Hi


I got the question that i wanted. please see the question below













































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
 
 
  Correct Choice : 2
 
  Justification :

 
 
SV = EV – PV
EV = SV + PV
= 30,000 + 100,000
= 130,000

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


am confused with the logic behind calculation of EV and CV. i mean when it will be plus or minus. have a look at the ev and cv calculation and their corresponding _ and + signs used in EV and CV. am bit confused. please help!

SV=EV-PV.  This relation is re-written to get the value of EV. Just relax and add PV to both sides of the equation.  Then it becomes:  SV+PV=EV or re-write: EV=SV+PV.  Same thing for CV,EV, AC relation.


% Completed = 100* EV/EAC = 100* 130,000/750,000 = 17.33%


CPI = EV/AC =130,000/80,000 =1.625


If you go at this rate throughout the project, EAC = BAC/CPI = 750,000/1.625 = $461,538


 


Chandra

How did you know to use the EAC (present CPI) formula? I was trying to use the budget rate formula AC+BAC-EV. Did you use it b/c the question asked about performance reports? I'm just curious; I want to make sure I know what to look for if I have a similar question on the exam.


Thanks for your help!


M.

The question does not say about the trend of the remaining project.  So I assumed that the remaining project continues to progress at the current rate of EV, CV etc ('TYPICAL') and I used BAC/CPI formula to compute EAC.  If the question clearly states that the current trend is not going to be there for the reminder (ATYPICAL) and the reminder of the project follows original plan from now on then your formula needs to be used


 


Chandra