You Have Just Performed a CPM Analysis and Have Found

question 7

Multiple Choice

You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values.What can you conclude?

• A)You have incorrectly performed the analysis.
• B)You have multiple critical paths.
• C)Only one path is optimal.
• D)More than one path is optimal.
• E)The project will not be completed by the desired time.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the time value of money and risk.

Profitability Index (PI)

The profitability index is a calculation used to assess the relative profitability of an investment, based on its present value of future cash flows per unit of investment.

Profitability Index (PI)

A calculation that relates the benefits of an investment project to its costs, often used to compare the attractiveness of different projects.

Discount Rate

The rate at which an individual discounts future cash flows to determine their present value, essential in capital budgeting to assess the profitability of investments.