Consider the Following Project -What Is the Latest Possible Time That Activity E Can

question 48

Multiple Choice

Consider the following project.
$$\begin{array} { | c | c | c | } \hline \text { Activity } & \begin{array} { c } \text { Imunediate } \\\text { Predecessor }\end{array} & \begin{array} { c } \text { Activity Time } \\\text { (drys) }\end{array} \\\hline \text { A } & - - & 3 \\\hline \mathrm { B } & - - & 4 \\\hline \mathrm { C } & \mathrm { A } & 4 \\\hline \mathrm { D } & \mathrm { A } & 6 \\\hline \mathrm { E } & \mathrm { B } & 5 \\\hline \mathrm { F } & \mathrm { C } , \mathrm { D } & 4 \\\hline \mathrm { G } & \mathrm { E } _ { \mathrm { F } } \mathrm { F } & 7 \\\hline\end{array}$$
-What is the latest possible time that Activity E can be started without delaying the completion of the project?

• A) 8
• B) 3
• C) 7
• D) 9

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Definitions:

Capital Investment Evaluation

The process of assessing the profitability and risk of potential investment opportunities, using methods such as net present value, return on investment, or payback period.

Net Present Value

The calculation used to determine the current value of a series of future cash flows, discounted back at a particular rate.

Required Rate of Return

The minimum percentage return an investor expects or requires from an investment to compensate for its risk.

Expected Cash Flows

Forecasted cash receipts and payments over a specified period, often used for investment appraisal.