Use the Information for the Question(s)below

question 23

Multiple Choice

Use the information for the question(s) below.
DM Skateboard company is planning to develop a new electric skateboard.In order for the project to be successful,the company must develop a new deck to accommodate a lightweight battery and a remote that is easy to operate while moving in an open environment.The company estimates the following costs,times,and probabilities of success for each component of the new skateboard: All three risks are idiosyncratic and the risk-free rate of interest is 5%.The company does not have the resources to develop all the components at the same time.Therefore,management needs to decide in what order to develop the technologies.
-What is the failure cost index of the remote technology?

• A)0.00200
• B)0.99800
• C)0.00210
• D)0.99810

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Definitions:

Basic Elements

Fundamental components or aspects that form the essential foundation or structure of a system, concept, or subject.

Manual Work

Labor performed by human workers using physical efforts, as opposed to tasks performed by machines or automation.

Tasks

Distinct activities or actions that are undertaken to achieve a particular goal, often constituting parts of larger projects or processes.

Psychological Requirements

Emotional or mental needs that must be satisfied for individuals to perform efficiently and effectively in their environment.