Harry works as a project manager for the NHQ project. His project has a budget of $2,208,456 and
is scheduled to last for three years. His project is currently forty percent complete though it should
be forty-five percent complete. In order to reach this point of the project, he has spent $725,000.
Management needs a performance report regarding the NHQ project. Management is concerned
that this project will be over budget upon completion. What is the estimate at completion for this
project that Harry will need to report to management?

A.
$1,312,504

B.
$787,504

C.
$1,812,498

D.
$725,000

Explanation:
The estimate at completion can be calculated by dividing the budget at completion by the cost
performance index. Here,
CPI =EV/AC
= (0.40*2,208,456)/725000
= 1.21846
EAC = BAC/CPI
= 2,208,456/1.21846
= 1,812,498
What is Estimate at Completion (EAC)? Estimate at Completion (EAC) is a field that displays the
final cost of the project including the actual costs and the forecast of remaining costs based on the
cost performance index (CPI) so far. The formula used to calculate this estimate is as follows:
ACWP+(BAC-BCWP)/CPI