A project has an original project budget of $1,150 and both the Cost Performance Index (CPI) and Schedule Performance Index (SPI) are equal to 1. Assuming the project will continue to spend money at the same rate, what is the estimate at completion (EAC) of the project

$1150

Explanation:

It is give that SPI and CPI is equal to 1, which means project will continue to spend at the same current rate. Therefore we can use following formula:

EAC = BAC/CPI

BAC = Budget at completion = $1150

EAC = $1150/ 1 = $1150

The answer is $1,150

Explanation:

Using the formula EAC = BAC/ CPI

Where EAC = Estimate at completion , BAC = Budget at completion, CPI = Cost Performance Index,

Since the project will continue to spend money at the same rate

Since the original project budget is $1,150 then,

EAC = 1,150 / 1

= 1,150

Therefore the estimate at completion is $1,150

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.