A project initially had a Budget at Completion (BAC) of $500,000. Currently, the project’s Earned Value (EV) is $200,000 and the Actual Cost (AC) is $250,000. If the Cost Performance Index (CPI) is calculated to be 0.8, what is the Estimate at Completion (EAC) based on the current CPI?
The Estimate at Completion (EAC) based on the current CPI is calculated using the formula EAC = BAC / CPI. With a BAC of $500,000 and a CPI of 0.8, the EAC would be $500,000 / 0.8, which results in an EAC of $625,000. This indicates that the project is expected to cost $625,000 to complete based on current performance.
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