EAC Question

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EAC Question

Postby umeshbww Sun Sep 14, 2014 3:53 pm

You are managing a project for which initial cost baseline is $300,000. Your project has suffered many fluctuations in cost and schedule estimates and the initial planned values are no more valid and already spent $200,000 for the work worth $250,000 with the CPI as 0.6 till now. You, with the help of your team have done the bottom up estimates using project’s WBS to get the new baselines as $400,000. Calculate EAC for the project.

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Re: EAC Question

Postby bs_pani Thu Sep 25, 2014 6:20 am

I will go with 600,000

AC + ETC = 200,000 +600,000 = 400,000

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Re: EAC Question

Postby Parul Thu Sep 25, 2014 9:40 am

Hi Pankaj,

We are assuming that given fig. of New baseline 4,00,000 amount is required to complete the remaining work. Hence 2,00,000 + 4,00,000 = 6,00,000 is correct Choice.

However if its new Baseline (which means total projects budget) then EAC should have been 2,00,000. Since 2,00,000 is not even a choice here we are assuming the new baseline that they are talking about is for the remaining work to be completed.

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