I have a question on the TCPI demystified paper from the PMstudy coach cost mgmt. lesson. On page 3 there is a calculation of the required EAC to be able to calculate the TCPI (based on EAC). Here are the numbers from Frank's dog house:
status on day 3:
To calculate TCPI, we first need to calculate EAC. Per definition the EAC=AC+ETC (one possibility). So, corresponding to this example we have to make a new forecast on ETC as we need to earn 2 USD value for every 1 USD we spend (as posted in the example). Therefore new ETC = 400 USD ( 200 USD / day).
Now, in the calculation of the EAC there is the EV used instead of AC - so, can you tell me please what is the reason for this? I thought we need AC to calculate the EAC?
TCPI demontrated overall performance and is calculated by dividing the Total work remaining by Total fund remaining. In this case,
the total work remaining will be BAC-EV and
Total fund remaining will be BAC-AC
thus, the formula is TCPI = (BAC-EV)/(BAC-AC)
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