CAPM Practice: Determine how to document project controls of predictive, plan-based projects

EAC = BAC/CPI = $800,000/0.94 ≈ $851,064 uses current CPI to project total cost, assuming current efficiency continues. Since the project has $80,000 of work remaining (BAC - EV = $800K - $720K), and has been spending at 94 cents of value per dollar spent, completing the remaining work at the same efficiency forecasts total cost of $851K. This gives the sponsor a performance-based forecast rather than optimistically assuming remaining work will be done at 100% efficiency.

**Why not A:** Stating that EAC equals the original BAC of $800,000 ignores the project's actual cost performance. With a CPI of 0.94, the project is consistently spending more than planned per unit of work, making an on-budget completion unrealistic.

**Why not B:** EAC = AC + (BAC - EV) = $846,000 assumes the remaining work will be completed at the originally budgeted efficiency (CPI = 1.0). This is an optimistic assumption that disregards the established pattern of cost overrun reflected in the current CPI of 0.94.

**Why not C:** Setting EAC equal to actual cost alone ($766,000) ignores the remaining $80,000 of work that still needs to be completed. Actual cost to date does not represent the total forecast for the project since there is outstanding work remaining.