What Is the Total Amount Budgeted for Design Costs in This

question 1

Multiple Choice

What is the total amount budgeted for design costs in this time-phased budget? $$\begin{array} { | l | l | l | l | l | } \text { Activity } & \text { January } & \text { February } & \text { March } & \text { April } \\\hline \text { Survey } & 8,000 & & & \\\hline \text { Design } & 5,250 & 4,500 & & \\\hline \text { Dirt } & & 6,700 & & \\\hline \text { Foundation } & & 12,550 & & \\\hline \text { Framing } & & & 37,250 & \\\hline \text { Plumb } & & & 7,800 & \\\hline \text { Wire } & & & & 5,500 \\\hline\end{array}$$

• A) $5,250
• B) $4,500
• C) $9,750
• D) $12,550

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Definitions:

Market Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock, based on the current market price.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.

Default Risk

The risk that a borrower will not make the contractual interest or principal payments on their debt obligations.