A Simple Sequential Project (Each Task Must Be Completed Before

question 11

Multiple Choice

A simple sequential project (each task must be completed before the next one can begin) has the time estimates (in days) shown below: What is the probability that the project will be completed within 8.5 days? (Choose the closest answer.)

• A)80 percent
• B)15 percent
• C)75 percent
• D)5 percent

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Cash Inflows

Refers to the money received by a business from its various sources, such as sales revenue, investment income, and financing.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Incremental Net Operating Income

The difference in net operating income between two alternatives.