EAC = BAC / CPI
So if CPI = 2 and BAC was $10,000; we would have
EAC = 10,000 / 2 = 5,000
Or to re-phrase… If we are spending half as much money based on current project status we can extrapolate that the whole project will cost half as much
Remember when we had a CPI of 2 ?
We were Spending half as fast as we should be
While this looks good, it is more likely your Engineers are using Scotty’s double the estimate trick so they look like miracle workers