Question from Oliver Lehmann (www.oliverlehmann.com)

Submitted by Hylton on Mon, 07/09/2012 - 22:38

 Your project exceeded costs in the past caused by an underestimation of 

resource costs in the cost baseline:
PV: $1,200,000, EV: $1,000,000, AC: $1,200,000
You expect the underestimation to influence the future as much as it did in the 
past. 
If the value of the remaining work (BAC – EV) is at $1,000,000, what should be 
your new EAC (estimate at completion)?
 
o $1,800,000
o $2,000,000
o $2,200,000
o $2,400,000
 
Answer sheet has 4 as the answer.
 
In  my opinion:
ETC (BAC - EV) = 1 000 000
AC = 1 200 000
 
EAC = AC + ETC = 1 000 000 + 1 200 000 = 2 200 000 ( Not correct accoridng to answer sheet)
Forums: 
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sspawar

Tue, 07/10/2012 - 00:03

actually here as per trend analysis

CPI = EV/AC  = 100000/120000 =5/6

EAC for remaining work will be  ETC = BACremained/CPI = 100000/5/6

EAC = AC+ETC = 120000 + 120000

Hylton

Tue, 07/10/2012 - 01:27

 thanks ss

 

Hylton

Tue, 07/10/2012 - 01:32

 Hi SS

How do you get to BAC as 1 000 000?

 

sspawar

Tue, 07/10/2012 - 02:03

If the value of the remaining work (BAC – EV) is at $1,000,000, what should be -----