If an Activity's Optimistic Time Is 3 Months,its Realistic Time

question 140

True/False

If an activity's optimistic time is 3 months,its realistic time is 5 months,and its pessimistic time is 10 months,then its estimated time would be 5.5 months.

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Definitions:

Financial Leverage

Utilization of debt to expand the potential profitability of an investment.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its interest payments on outstanding debt.

EBIT

EBIT, or Earnings Before Interest and Taxes, represents a company's profit figure that does not take into account expenses stemming from interest and income taxes.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically presented in the income statement.