ExpertHard1 markShort Answer
PMP · Question 19 · 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/>Calculate the Estimate at Completion (EAC) assuming current performance will continue for the remainder of the project. Round to the nearest dollar and 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/>Calculate the Estimate at Completion (EAC) assuming current 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 performance will continue.
Full Answer
When current variances are expected to continue, EAC = BAC/CPI provides the most accurate estimate. CPI = EV/AC = 250,000/280,000 = 0.893. EAC = 500,000/0.893 = 560,000.
Common mistakes
Using wrong EAC formula, calculation errors with CPI, or not rounding to nearest dollar.
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