A Simple CPM Network Has Three Activities,A,B,and C

question 31

Multiple Choice

A simple CPM network has three activities,A,B,and C.A is an immediate predecessor of B and of C.B is an immediate predecessor of C.The activity durations are A=4,B=3,C=8.

• A)The critical path is A-B-C,duration 15.
• B)The critical path is A-C,duration 12.
• C)The critical path is A-B-C,duration 13.5
• D)The critical path cannot be determined without knowing PERT expected activity times.
• E)The network has no critical path.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

8 ½% Bond

A bond that pays an annual interest rate of 8.5% on its face value.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, typically used for bonds.

Bond A

A generic term for any type of bond, often used in examples to explain bond investment concepts without referring to a specific issue.