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    PracticePMI PMP®PMI PMP Practice ExamQuestion 07
    Hard1 markShort Answer
    Task 5: Plan and manage budgetProcessCostCalculation

    PMP · Question 07 · Task 5: Plan and manage budget

    A project has a Budget at Completion (BAC) of $100,000. The project is currently 40% complete. The Actual Cost (AC) is $45,000. The project manager expects the current cost variance to be typical for the remainder of the project. What is the Estimate at Completion (EAC)? (Enter the number only, no currency symbols or commas)

    How to approach this question

    Calculate EV, then CPI, then EAC using the formula BAC/CPI.

    Full Answer

    1. EV = 40% * 100,000 = 40,000.<br/>2. CPI = EV / AC = 40,000 / 45,000 = 0.8888...<br/>3. EAC = BAC / CPI = 100,000 / (40,000/45,000) = 100,000 * (45,000/40,000) = 112,500.

    Common mistakes

    Using the wrong EAC formula (e.g., AC + BAC - EV) which applies when variance is atypical.
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