Activity Times Must Be Estimated from Historical Data of Similar

question 30

True/False

Activity times must be estimated from historical data of similar work tasks to provide realism for a project.

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Definitions:

Machine

Equipment or apparatus designed to perform a specific task in the manufacturing process.

Present Value

The immediate worth of anticipated money or streams of cash flows, computed with an agreed-upon rate of return.

Cash Inflows

Money received by a business from its operational, financing, and investing activities.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument; a measure of the time value of money.