Question

A project has an original project budget of $1,150 and both the Cost Performance Index (CPI) and Schedule Performance Index (SPI) are equal to 1. Assuming the project will continue to spend money at the same rate, what is the estimate at completion (EAC) of the project

Answer 1

Answer: $1150

Explanation:

It is give that SPI and CPI is equal to 1, which means project will continue to spend at the same current rate. Therefore we can use following formula:

EAC = BAC/CPI

BAC = Budget at completion = $1150

EAC = $1150/ 1 = $1150

Answer 2

Answer: The answer is $1,150

Explanation:

Using the formula EAC = BAC/ CPI

Where EAC = Estimate at completion , BAC = Budget at completion, CPI = Cost Performance Index,

Since the project will continue to spend money at the same rate

Since the original project budget is $1,150 then,

EAC = 1,150 / 1

= 1,150

Therefore the estimate at completion is $1,150