Question

you have a project with a budget of 400,000 usd. during execution phase, one machine fails which costs you a lot of money. however, you are sure that this will not happen again, and you can continue with your calculated performance for the rest of the project. to date you have spent 200,000 usd, and the value of the completed work is 180,000 usd. calculate the estimate at completion (eac).

Answer 1

To calculate the estimate at completion (EAC) for the project, we can use the formula EAC = Budget / (Value of Completed Work / Cost Spent). Plugging in the provided values, the EAC is $444,444.44.

Step-by-step explanation:

To calculate the estimate at completion (EAC), we need to consider the cost of the project, the amount spent to date, and the value of the completed work. In this case, the project has a budget of $400,000, $200,000 has been spent to date, and the value of the completed work is $180,000.

We can calculate the estimate at completion using the formula:

EAC = Budget / (Value of Completed Work / Cost Spent)

Plugging in the values from the question, we get:

EAC = $400,000 / ($180,000 / $200,000) = $444,444.44