Question: How did we calculate this? In this example, the original estimates are bad because they are based on a flawed architecture approach. Therefore, we will

 How did we calculate this? In this example, the original estimates

How did we calculate this? In this example, the original estimates are bad because they are based on a flawed architecture approach. Therefore, we will calculate Estimate At Completion using the formula from scenario one: Estimate At Completion = Actual Cost + Bottom-up Estimate To Complete Knowing this we can calculate: $210,000+ (S50,000+S30,000+$10,000) $300,000 Example 2 How did we calculate this In this example, the CPI is not considered abnormal. Therefore, a formula using CPI can be So we will calculate Estimate At Completion using the formula from scenario two: Estimate At Completion Budget At Completion/Cost Performance Index Knowing this we can calculate: ($1,600,000+$18,750,000$4,500,000+ $2,300,000)/1.08 $25,138,888.89 used. How did we calculate this? In this example, the original estimates are bad because they are based on a flawed architecture approach. Therefore, we will calculate Estimate At Completion using the formula from scenario one: Estimate At Completion = Actual Cost + Bottom-up Estimate To Complete Knowing this we can calculate: $210,000+ (S50,000+S30,000+$10,000) $300,000 Example 2 How did we calculate this In this example, the CPI is not considered abnormal. Therefore, a formula using CPI can be So we will calculate Estimate At Completion using the formula from scenario two: Estimate At Completion Budget At Completion/Cost Performance Index Knowing this we can calculate: ($1,600,000+$18,750,000$4,500,000+ $2,300,000)/1.08 $25,138,888.89 used

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