The following data is received from your contractor: Budgeted Cost of Work Perfo

Question

The following data is received from your contractor: Budgeted Cost of Work Performed (BCWP) = $200 Cost Performance Index (CPI) = 0.8 Budgeted Cost of Work Scheduled (BCWS) = $300 Schedule Performance Index (SPI) = 0.66 Actual Cost of Work Performed (ACWP) = $250 Budget at Completion (BAC) = $800 Contractor's Latest Revised Estimate = $900 Equation for Estimate at Completion (EAC) Low = ACWP+((BAC-BCWP)/(CPI)) Equation for EAC High = ACWP+((BAC-BCWP)/(CPI*SPI)) Which of the following represents the most reasonable EAC range for these data based on Earned Value Management (EVM)?

Explanation / Answer

EAC(low) = ACWP+((BAC-BCWP)/(CPI))

= 250 + (800-200)/0.8

= 250 + 600/0.8

= 250 + 750

= 1000

EAC (high) = ACWP +((BAC-BCWP)/(CPI*SPI))

= 250 + (800-200)/(0.8*0.66)

= 250 + 750/0.66

= 250 + 1136.36

= 1386.36

EAC range = $ 1000 - $ 1386.36

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