Here Are the Data for a Time-Cost CPM Scheduling Model

question 19

Multiple Choice

Here are the data for a time-cost CPM scheduling model analysis.The time is in days and the costs include both direct and indirect costs. What are the total time of this project and total normal cost?

• A)Total time is 13 days, total cost is $1,200.
• B)Total time is 12 days, total cost is $1,700.
• C)Total time is 11 days, total cost is $1,600.
• D)Total time is 10 days, total cost is $1,750.
• E)Total time is 9 days, total cost is $1,700.

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Definitions:

Capital Budgeting

The process used by businesses to evaluate and decide on major investments or expenditures.

Monte Carlo Simulation

A statistical technique that uses random sampling and variability to predict outcomes of a process, often used in finance to model risk and uncertainty in investment portfolios.

Simulation

The process of creating a model to study the behavior of a system or its components under various conditions.

Capital Budgeting

The process of assessing and planning for a company's long-term investment opportunities and expenditures to ensure profitability and expansion.