Use the Information in the Table (All Times Are in Days)to

question 36

Multiple Choice

Use the information in the table (all times are in days) to determine the lowest extra cost for an 18-day project if the base cost for each activity finished in normal time is $1,000. $\begin{array}{|l|l|l|l|l|} \hline&\text { Normal }&\text {Minimum}&\text { Crash Cost }\\ \text {Activity}&\text {Time}&\text {Time}&\text { (\$/day) }& \text { Predecessor }\\\hline \mathrm{A}& 10 & 6 & \$ 70 & -- \\ \hline \mathrm{B} & 6 & 3 & \$ 40 & -- \\\hline\mathrm{C} & 2 & 2 & - &\mathrm{B } \\\hline\mathrm{D} & 4 & 2 & \$ 60 &\mathrm{ C } \\\hline \mathrm{E} & 6 & 4 & \$ 80 &\mathrm{ A } \\\hline\mathrm{F} & 8 & 5 & \$ 90 & \mathrm{D},\mathrm{ E }\\\hline \end{array}$

• A)$400
• B)$420
• C)$440
• D)$460

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Definitions:

Diversified Portfolios

A strategy that mixes a wide variety of investments within a portfolio to minimize risks.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

Equally-Weighted Portfolio

An investment portfolio in which each asset is allocated the same proportion of the total investment, regardless of the asset's market value.

Short Sell

The practice of selling a borrowed security with the intention of buying it back later at a lower price to profit from the price difference.