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# TOPIC: EVM related question

## EVM related question 2 years 2 months ago #14571

 Saloni Nigam Topic Author Offline Fresh Boarder Posts: 10 Thank you received: 0 Hi, I came across this EVM related question online. Can someone please explain how to arrive at the correct answer? Q: You are the project manager for a construction company with a budget of \$300,000 and two months into the project, you find that there have been several changes in the project and you re-estimate that the project will cost additional money. If the Earned value to date is \$175,000 and the costs incurred are \$225,000 calculate the estimate at completion (EAC)? The correct answer is: \$385,000. Thanks, Saloni Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## EVM related question 2 years 2 months ago #14608

 Ty Weston, PMP Offline Gold Boarder Posts: 207 Thank you received: 36 Would you state where you got this question from? Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## EVM related question 2 years 2 months ago #14618

 Anonymous Visitor There would have been more clarity if all the options given in question posted . Going by what is stated here EAC has been completed by assuming that CPI would be same for remainder of project ( What project has experienced to date can be expected to be continued in future also) . in such a scenario EAC= BAC/ CPI = BAC*AC / EV That works out to be 300,000*225,000/175,000 = 385,714 which might have been rounded off. PMBOK 6 / page 265 describes common methods to calculate EAC EAC = AC + (BAC – EV). Here we consider that what ever happened has happened but future work will be accomplished at budgeted rate, here PM re-estimate that the project will cost additional money shows that future work will not be accomplished at Budgeted rate. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## EVM related question 2 years 2 months ago #14736

 Saloni Nigam Topic Author Offline Fresh Boarder Posts: 10 Thank you received: 0 Sorry, I am unable to locate the source of question now. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## EVM related question 2 years 2 months ago #14737

 Saloni Nigam Topic Author Offline Fresh Boarder Posts: 10 Thank you received: 0 Thanks for the reply and sorry for getting back so late.. If we ignore the provided correct answer in the question and go by the explanation you have given, the correct formula in this case should be EAC = AC + (BAC-EV), right? Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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