A project has a budget at completion (BAC) of $200,000. The earned value (EV) is $90,000, and the actual cost (AC) is $100,000. What is the estimate at completion (EAC) if the project is expected to continue at the same cost performance?
Trap 1: $210,000
Incorrect calculation.
Trap 2: $200,000
This ignores the cost overrun.
Trap 3: $190,000
Incorrect; this would be if CPI=1.0 or using a different formula.
- A
$210,000
Why it fails: Incorrect calculation.
- B
$200,000
Why it fails: This ignores the cost overrun.
- C
$190,000
Why it fails: Incorrect; this would be if CPI=1.0 or using a different formula.
- D
$222,222
Using the cost performance index (CPI = EV ÷ AC = 0.9), the estimate at completion assumes the current cost efficiency persists: EAC = BAC ÷ CPI = $200,000 ÷ 0.9 = $222,222. This satisfies the stem's constraint that the project continues at the same cost performance, rather than the atypical-variance formula.