An Activity Has a Pessimistic Time That Is Four Times

question 19

Multiple Choice

An activity has a pessimistic time that is four times as long as its most likely time and six times as long as its optimistic time.If the activity variance is 12,what is the expected time?

• A)About 8 days
• B)About 9 days
• C)About 10 days
• D)About 11 days

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Definitions:

Tax-Oriented Lease

A lease structured in such a way that the lessor can claim tax benefits, such as depreciation and tax credits.

Financial Lease

A type of lease where the lessee pays for an asset over a period of time, and at the end of the lease term the asset typically becomes the lessee's property.

Lessor

The entity in a lease agreement that possesses the asset and allows the lessee to utilize the asset in return for payments of rent.

Break-Even Lease Payment

The break-even lease payment is the lease payment at which the cost of leasing equals the cost of owning, neither gaining nor losing financially over the term of the lease.