A Project Consists of Four Activities with Information as Shown

question 36

Multiple Choice

A project consists of four activities with information as shown in the table.What is the overall variance of the project? $$\begin{array} { | l | l | l | l | } \hline \text { Activity } & \text { Predecessor } & \text { Length } & \text { Variance } \\\hline \text { A } & - & 10 & 4 \\\hline \text { B } & \text { A } & 12 & 3 \\\hline \text { D } & \text { B } & 16 & 5 \\\hline & \text { C } & 14 & 6 \\\hline\end{array}$$

• A) 4.24
• B) 8.41
• C) 18
• D) 24

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Definitions:

Compounded monthly

The process of calculating interest on an investment or loan each month, with each month's interest added to the principal.

Economic value

The worth of a good or service as determined by the market and the price a buyer is willing to pay.

Compounded quarterly

Interest calculation method where the interest is added to the principal every three months, affecting the overall amount on which future interest is calculated.

Perpetuity

An annuity in which payments continue indefinitely, typically at a fixed rate.