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Ann was asked to provide an update to her project, currently it is on track or slightly ahead of the plan, as part of this she will include her estimate at completion: AC=$500,000, BAC= $550,000, and CPI=1.1. Which is the correct EAC calculation result for her project?
$600,000
$500,000
$400,000
$550,000
Let's first look at the formulas: CPI=EV/AC which is 1.1=EV/$500,000 or EV=$550,000. Then we proceed to EAC formual stating that future work will be accomplished to or ahead of plan _EAC =AC+BAC-EV. We fill in the calculation EAC=$500,000+$550,000-$550,000 =$500,000. This assumes her project remains on or ahead of plan. With this said, the correct answer is C-$500,000. (PMBOK 2013 Rev 5th Edition, pgs 217-225).
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