EAC = BAC / CPI
So if CPI = 0.5 and BAC was $10,000; we would have
EAC = 10,000 / 0.5 = 20,000
Or to re-phrase… If we are spending twice as much money based on current project status we can extrapolate that the whole project will cost twice as much
Remember when we had a CPI of 0.5 ?
We were Spending twice as fast as we should be