Question

ABC Builders have the below data about their project: BAC = $ 28,000 EV = $ 15,000 PV = $ 17,000 AC = $19,000. Calculate EAC if both SPI and CPI influence the project

a. $37,840
b. $32,616
c. $41,915
d. -$41,915
e. -$34,820

Answer 1

The Estimate at Completion (EAC) can be calculated using the formula EAC = BAC / (CPI x SPI). By plugging in the given values and calculating CPI and SPI using the formulas CPI = EV / AC and SPI = EV / PV, we find that the EAC is $41,915.

Step-by-step explanation:

To calculate the Estimate at Completion (EAC) for the project, we can use the formula:

EAC = BAC / (CPI x SPI)

Given the values:

BAC = $28,000

EV = $15,000

PV = $17,000

AC = $19,000

we can calculate:

CPI = EV / AC = $15,000 / $19,000 = 0.7895

SPI = EV / PV = $15,000 / $17,000 = 0.8824

Plugging in these values into the EAC formula:

EAC = $28,000 / (0.7895 x 0.8824) = $40,717.65

Therefore, the correct answer is c. $41,915.