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Rachel was asked by her Supervisor to provide an update to her project, currently it is on track or ahead of the plan, as part of this she will include her estimate at completion: AC=$700,000, BAC= $750,000, and CPI=1.07. Which is the correct EAC calculation result for her project?
$600,000
$750,000
$550,000
$700,000
Let's first look at the formulas: CPI=EV/AC which is 1.07=EV/$700,000 or EV=$750,000. 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=$700,000+$750,000-$750,000 =$700,000. This assumes her project remains on or ahead of plan. OR, you could say EAC=BAC/CPI and round accordingly.
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