EAC=500,000/0.86=581,395 Hence the Estimate at Completion (EAC) is 581,395 USD. Practice Ouestion: 11 You have recently joined an ongoing project. The cost of the project is 350,000 USD, and 150,000 USD has already been spent and 40% of the work is actually completed. However, according to the schedule, 43% of the work should have been completed to date. Determine the EAC. Lab Project \#7 (15 pts.) IS187/MGMT 158 \$2020 Example(EAC) Case-l: You have a project which is worth 500,000 USD. Seven months have passed and 350,000 USD has been spent. Upon closer review you find that only 60% of the work is completed; however, as per the schedule, 65% of the work should have been completed. Determine the Estimate at Completion (EAC). Solution: Estimate At Completion =( Budget At Completion )/( Cost Performance Index) EAC=BAC/CPI And. Cost Performance Index = (Eamed Value )( Actual Cost )CPI=EV/AC Earned Value =60% of BAC =0.6+500,000=300,000 Actual Cost =350,000 Hence, CPI=(EarnedValue)(ActualCost)=300,000/350,000=0.86 Hence, EAC=500,000/0.86=581,395 Hence the Estimate at Completion (EAC) is 581,395 USD