Example (EAC) Case-I: 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 = (Earned Value)/(Actual Cost) CPI = EV/AC Earned Value = 60% of BAC = 0.6 * 500,000 = 300,000 Actual Cost = 350,000 Hence, CPI = (Earned Value)/(Actual Cost) = 300,000/350,000 = 0.86 Hence, EAC = 500,000/0.86 = 581,395 Hence the Estimate at Completion (EAC) is 581,395 USD.Practice Question: 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