## EVM Question

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Parevi88007
Posts: 6
Joined: Wed Jan 17, 2018 7:19 am

### EVM Question

Hi,
I came across this EVM question online. Can someone please explain how to arrive at the correct answer?

Q: You are the project manager for a construction company with a budget of \$300,000 and two months into the project, you find that there have been several changes in the project and you re-estimate that the project will cost additional money. If the Earned value to date is \$175,000 and the costs incurred are \$225,000 calculate the estimate at completion (EAC)?

The correct answer is: \$385,000. I am getting \$350,000. I used the formula AC+(BAC-EV). I actually think that AC+ETC must be used in this scenario since it is related to re-estimate but I cannot figure how to calculate it. Please help.

Thanks.
manishpn
Expert
Posts: 2509
Joined: Sat Jan 04, 2014 3:55 pm

### Re: EVM Question

they have used AC + (BAC - EV) formula, used when variance is atypical
however as thumb rule if nothing is explicitly mentioned we should assume variance is typical
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/