How is the Estimate at Completion (EAC) computed when future work is expected to proceed at the same rate as current performance?

• A. EAC = AC + BAC − EV
• B. EAC = BAC / CPI
• C. EAC = AC + (BAC − EV)
• D. EAC = BAC − EV

Answer: (C)

When future work is expected to proceed at the same rate as what has been achieved so far, the forecast for the total cost is the money already spent plus the cost needed to finish the remaining work. The remaining work in budget terms is the total budget minus the earned value to date (BAC − EV). So the estimate at completion is the actual costs to date plus that remaining amount: EAC = AC + (BAC − EV). This uses the idea that you’ll carry on with the same cost performance, adding what's left to finish to what you've already spent.