158 Managing projects as investments: Earned value to business value
Immediately we can see that we are not under budget at all. Based
on what was budgeted for these 10 work packages and what we’ve
actually spent to accomplish them, we are $15,000, or 20%, over bud-
get. If this is the way we perform on the remaining 90 work packages
that are budgeted for the remaining $925,000, how much would we
expect them to actually cost? On the basis of these data, we can proj-
ect that if current trends continue, our cost overrun on the remaining
budget will be 20% of $925,000, or $185,000. This means that our cost
estimate-to-complete (cost ETC) is $925,000 + $185,000, or $1,110,000.
Our cost estimate-at-completion (cost EAC) is $90,000 that we have ...