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Question:

Sue is working for a fitness company as a junior project manager under the guidance of a senior project manager. This company is developing a new franchise model. Given that the work is proceeding as planned; the EAC is $75,000, and the cumulative actual costs to date are $50,000. What is the expected cost to finish the remaining work of this project?

A $25,000
explanation

The expected cost to finish the rest of the project is also called the Estimate To Complete (ETC). Because the work is proceeding as planned, Sue can use the following ETC formula: ETC = EAC – AC.
Plug in the values to get the following: $75,000 – $50,000 = $25,000.

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