A project with BAC = $800,000 has EV = $300,000 and AC = $375,000. Assuming future performance will continue at the current cost efficiency, what is the estimate at completion (EAC)?

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Accepted Answer

$1,000,000. When performance continues at the current rate, EAC = BAC / CPI. CPI = EV/AC = 300,000/375,000 = 0.80. EAC = 800,000 / 0.80 = $1,000,000. The $875,000 distractor uses BAC+(AC-EV), which applies the wrong forecasting assumption.

A project with BAC = $800,000 has EV = $300,000 and AC = $375,000. Assuming future performance will continue at the current cost efficiency, what is the estimate at completion (EAC)?

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