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    PracticePMI PMP®PMI PMP Practice Exam 3Question 05
    Hard1 markShort Answer
    Task 5: Plan and manage budget and resourcesearned value managementEAC calculationcost performanceproject control

    PMP · Question 05 · Task 5: Plan and manage budget and resources

    A project has the following earned value metrics at the end of Month 8:<br/>- Budget at Completion (BAC): $750,000<br/>- Planned Value (PV): $450,000<br/>- Earned Value (EV): $375,000<br/>- Actual Cost (AC): $420,000<br/><br/>Calculate the Estimate at Completion (EAC) assuming current cost performance will continue for the remainder of the project. Round to the nearest dollar and enter numbers only.

    How to approach this question

    Calculate CPI first (EV/AC), then use EAC = BAC/CPI formula. This assumes current cost variance trends will continue.

    Full Answer

    EAC using CPI assumes current cost performance trends continue. CPI = EV/AC = 375,000/420,000 = 0.8929. EAC = BAC/CPI = 750,000/0.8929 = 842,857.

    Common mistakes

    Using wrong EAC formula (like EAC = AC + BAC - EV which assumes no future variance), or calculation errors in CPI.
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