Explain Why It Is Important to Evaluate Non-Critical Paths That

question 38

Essay

Explain why it is important to evaluate non-critical paths that possess large variances and / or path times that are close to critical in duration.

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Definitions:

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.

Cutoff Rate

A specific point or standard used for decision-making, often concerning the minimum accepted return on investment.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.