A Project Is Represented by the Activity Durations (In Days,estimated

question 97

Multiple Choice

A project is represented by the activity durations (in days,estimated at 90% likelihood of completion) and precedence requirements shown in the table.What is the length of the project buffer if this project is managed using critical chain methodology? Use the rule of thumb approach. $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Activity } & \text { Predecessor } & \text { Length } & \text { Activity } & \text { Predecessor } & \text { Length } \\\hline \text { A } & - & 18 & \text { E } & \text { C, D } & 13 \\\hline \text { B } & - & 16 & \text { F } & \text { C } & 9 \\\hline \text { C } & \text { A } & 22 & \text { G } & \text { E, F } & 15 \\\hline \text { D } & \text { B } & 14 & & & \\\hline\end{array}$$

• A) 8.5 days
• B) 17 days
• C) 24.5 days
• D) 34 days

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Definitions:

Economic Exposure

The risk that a company's cash flow and market value may be affected by unexpected changes in exchange rates.

Financial Risk

The possibility of losing money on an investment or business venture.

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may change due to exchange rate fluctuations.

Manufacturing Costs

The total expenses directly involved in producing goods, including raw material, labor, and overhead costs, crucial for determining the final price of products.