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The AON Diagram Shown Represents a Project

question 43

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The AON diagram shown represents a project. Normal and crash times, and the associated costs, are shown for each activity in the accompanying table. If it is worth $5 000 a day to reduce the project duration, which activity or activities should be crashed? The AON diagram shown represents a project. Normal and crash times, and the associated costs, are shown for each activity in the accompanying table. If it is worth $5 000 a day to reduce the project duration, which activity or activities should be crashed?     A) There is no economical way to reduce completion time. B) Crash Activity 3 by 2 days. C) Crash Activity 7 by 2 days. D) Crash Activities 3 and 7 by one day each. E) Crash Activities 2 and 3 by one day each. The AON diagram shown represents a project. Normal and crash times, and the associated costs, are shown for each activity in the accompanying table. If it is worth $5 000 a day to reduce the project duration, which activity or activities should be crashed?     A) There is no economical way to reduce completion time. B) Crash Activity 3 by 2 days. C) Crash Activity 7 by 2 days. D) Crash Activities 3 and 7 by one day each. E) Crash Activities 2 and 3 by one day each.


Definitions:

Times-Interest-Earned Ratio

A measure of a company's ability to honor its debt payments, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Equity Multiplier

A ratio of financial leverage that calculates the proportion of a company's assets funded by its shareholders' equity.

Total Assets Turnover Ratio

Measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets.

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

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