Use the Information for the Question(s)below

question 38

Multiple Choice

Use the information for the question(s) below.
DM Skateboard company is planning to develop a new electric skateboard.In order for the project to be successful,the company must develop a new deck to accommodate a lightweight battery and a remote that is easy to operate while moving in an open environment.The company estimates the following costs,times,and probabilities of success for each component of the new skateboard: All three risks are idiosyncratic and the risk-free rate of interest is 5%.The company does not have the resources to develop all the components at the same time.Therefore,management needs to decide in what order to develop the technologies.
-What is the failure cost index of the battery technology?

• A)0.00375
• B)0.00392
• C)0.99875
• D)0.99892

---

Definitions:

Cervical Mucus

A fluid produced by the cervix that varies in consistency throughout the menstrual cycle, playing an important role in fertility and protecting the uterus from infections.

Mutual Masturbation

A sexual activity involving two or more individuals who stimulate their own genitals, often simultaneously, to achieve sexual pleasure.

Birth Control Pills

Hormonal medications taken orally by women to prevent ovulation and thereby avoid pregnancy.

Abstinence

The practice of refraining from some or all aspects of sexual activity for medical, psychological, legal, social, financial, philosophical, or religious reasons.