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Larry has one revenue generating project which is both behind schedule and slightly over budget. He has calculated the following against his project: CPI=.9, PV=$60,000, AC=$120,000, BAC=$100,000, and EV=$75,000. Which is the correct EAC calculation result for his project?
$129,988
$128,724
$128,889
$124,635
Let's first look at the formulas: SPI=EV/PV which is 1.25=$75,000/$60,000 or SPI=1.25. Then we proceed to EAC formula stating that future work will be influenced by both CPI and SPI: EAC =AC+[(BAC-EV)/(CPISPI)]. We fill in the calculation EAC=$120,000+([$100,000-$75,000]/[.91.25]) =$128,889
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