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 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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