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EAC calculations for new house

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The Situation: You are the project manager for constructing a custom house. Your company requires an evaluation of the estimate at completion (EAC). Since the pool change order described in Week 1 has not been executed, you dont have to change your baseline budget. Everything is going well; even the irrigation well and pump are in early. The EAC should be based on the planned and earned values in WBS PV EV July 1 spreadsheet.

The Assignment: Calculate EAC using the four different formulas. You know that Tropical Storm will impact your cost, so in the Bottom-up ETC you add $5,000 to the estimated cost for storm cleanup in WBS item 3.4; thus your Bottom-up ETC will be $5,000 higher than the ETC = EAC-AC (i.e. ETC =EAC-AC +$5,000). Explain the differences between the four forecasting formulas. Which one would you consider has the most validity? Include at least three credible references in addition to the PMBOK Guide with at least one of these being a peer-reviewed journal article. Properly cite your response.

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