You have just been hired by an accounting firm to manage a project to upgrade the company’s billing system. The previous project manager has managed the project since its inception and dutifully collected weekly activity reports from all team members. In reviewing the reports, you notice that CV = –$1,938, CPI = 0.74, AC = $8,338, EV = 6,400, ETC = $32,658, and BAC is $36,000. As the new project manager, you are preparing a report for your first presentation to senior management. What is the EAC you will report if past assumptions are flawed?
The correct answer is D.
If past assumptions are flawed, the formula is EAC = ETC + AC.
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