The CPM/PERT Technique Depicts Pathways That Link Events Together

question 27

Multiple Choice

The CPM/PERT technique depicts pathways that link events together. The pathway that actually determines how long a project will take is designated as the

• A)"event path"
• B)"critical path"
• C)"leader path"
• D)none of the above

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Definitions:

Capital Investment

The expenditure of funds by a firm to acquire physical assets, such as property, plant, or equipment, to improve its long-term income and profitability.

Net Present Value Method

A method of analysis of proposed capital investments that subtracts the amount to be invested from the present value of the cash flows expected from the investments.

Cash Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment based on its expected cash flows.

Capital Investment

Funding provided to a business entity to purchase physical assets, like equipment or buildings, or to use in operations to stimulate growth.