Plese help. I calculated with answer C while correct is D

I simply used EAC=AC+BAC-EV

108. Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline:

PV: $1,200,000, EV: $1,000,000, AC: $1,200,000

You expect the underestimation to influence the future as much as it did in the past.

If the value of the remaining work (BAC – EV) is at $1,000,000, what should be your new EAC (estimate at completion)?

A. $1,800,000

B. $2,000,000

C. $2,200,000

D. $2,400,00

## Oliver 175 - 108th Question

- ujjal_show
- Super Member

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### Re: Oliver Q108

Key term is "variance influence the future" So EAC =BAC/CPI

EAC =2000000/(1000000/1200000) =2400000

EAC =2000000/(1000000/1200000) =2400000

- meenakhan
- Beginner

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Thanks

### Re: Oliver Q108

I am not clear on this how come BAC=2000000, please clarify?ujjal_show wrote:Key term is "variance influence the future" So EAC =BAC/CPI

EAC =2000000/(1000000/1200000) =2400000

Thanks

- meenakhan
- Beginner

Post

Meena

### Re: Oliver Q108

Got it thanks much:)ujjal_show wrote:BAC-EV =1000000.

EV=1000000, So BAC=?

Meena

### Re: Oliver Q108

My two cents. I may be wrong.

If we use EAC = BAC/CPI, then EAC = 2400000. ETC = 2,400,000 - AC. So, ETC = 2,400,000 - 1,200,000 = 1,200,000.

Isn't it inconsistent with the given ETC in the Question Statement which is 1,000,000?

EAC = AC + (BAC-EV) = 2,000,000.

If we use EAC = BAC/CPI, then EAC = 2400000. ETC = 2,400,000 - AC. So, ETC = 2,400,000 - 1,200,000 = 1,200,000.

Isn't it inconsistent with the given ETC in the Question Statement which is 1,000,000?

EAC = AC + (BAC-EV) = 2,000,000.

- ujjal_show
- Super Member

Post

### Re: Oliver Q108

from where you get this ETC = 1,000,000 ??Isn't it inconsistent with the given ETC in the Question Statement which is 1,000,000?

### Re: Oliver Q108

Value of the Remaining Work is 1,000000 = (BAC-EV). Isn't that ETC as given? Thanks

- ujjal_show
- Super Member

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### Re: Oliver Q108

that is Remaining Work, estimate to complete only if project get complete by budgeted rate, where PV=EV=AC or if there is no variation or one time variation.