Exhibit 15.2 The Following Questions Employ the AON Network and Completed Spreadsheet

question 48

Multiple Choice

Exhibit 15.2
The following questions employ the AON network and completed spreadsheet below.
-There are various similarities between the CPM and PERT methods. Which of the following is not one of those similarities?

• A) Any project can be broken down into component activities that require different amounts of time.
• B) Any project can be broken down into component activities that must be accomplished in a specific order.
• C) Both techniques use the same method to calculate the time element of the activities in the project.
• D) Both require a detailed network of the project that clearly indicates each of the main activities and the precedence relationship among the activities.

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Definitions:

Present Value

The present worth of a sum of money or series of cash flows anticipated in the future, calculated using a certain rate of return.

Consumption Plan

An outline of how individuals or households intend to allocate their income towards consumption goods and services over a period.

Interest Rate

The cost of borrowing money or the reward for saving it, typically expressed as a percentage of the principal amount per year.

Interest Rate

The cost of borrowing money or the return for lending money, typically expressed as a percentage.