Suppose That the Crash Cost Is $10 Million, Normal Cost

question 18

Multiple Choice

Suppose that the crash cost is $10 million, normal cost is $8 million, normal project time is 10 years and crash time is 8 years, what is the project's crash cost per year?

• A)$1 million
• B)$2 million
• C)$3 million
• D)$4 million
• E)$5 million

---

Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Transfer of Ownership

The legal process by which the title of a property or asset is moved from one party to another.

Franchise

A business model where one party (the franchisor) grants another party (the franchisee) the rights to use its trademark and business systems and processes to produce and market goods or services according to certain specifications.

Partnership

A legal form of business operation between two or more individuals who share management and profits.