1.

For A Project With Estimate At Completion (eac) = $120,000 And Cost Performance Index (cpi) Is 0.90. What Is The Budget At Completion (bac)?

Answer»

As no INFORMATION is given on the future performance of the project, we could SAFELY assume that the project will spend at the same rate.

So we will make USE of the formula:

EAC = BAC / CPI

$120,000 = BAC / 0.90

BAC = $120,000 * 0.90 = $108,000

As no information is given on the future performance of the project, we could safely assume that the project will spend at the same rate.

So we will make use of the formula:

EAC = BAC / CPI

$120,000 = BAC / 0.90

BAC = $120,000 * 0.90 = $108,000



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