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Task 5: Plan and manage budget and resourcesearned value managementEAC calculationcost performanceproject metrics
PMP · Question 05 · Task 5: Plan and manage budget and resources
A project has the following earned value metrics at the end of Month 6:<br/>- Budget at Completion (BAC): $500,000<br/>- Planned Value (PV): $300,000<br/>- Earned Value (EV): $250,000<br/>- Actual Cost (AC): $280,000<br/><br/>The project manager needs to calculate the Estimate at Completion (EAC) assuming current performance will continue for the remainder of the project. What is the EAC? (Round to the nearest dollar, enter numbers only)
A project has the following earned value metrics at the end of Month 6:<br/>- Budget at Completion (BAC): $500,000<br/>- Planned Value (PV): $300,000<br/>- Earned Value (EV): $250,000<br/>- Actual Cost (AC): $280,000<br/><br/>The project manager needs to calculate the Estimate at Completion (EAC) assuming current performance will continue for the remainder of the project. What is the EAC? (Round to the nearest dollar, enter numbers only)
How to approach this question
Calculate CPI first (EV/AC), then use EAC = BAC/CPI formula when assuming current performance continues. Round to nearest dollar and enter numbers only.
Full Answer
560000
When current variances are expected to continue, use EAC = BAC / CPI. CPI = EV/AC = 250,000/280,000 = 0.893. EAC = 500,000/0.893 = 560,000.
Common mistakes
Students often use EAC = AC + BAC - EV (assumes no future variance) or forget to calculate CPI first, or make rounding errors.
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