The Fundamental Difference Between PERT and CPM Is That PERT

question 89

True/False

The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.

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Definitions:

Forecasted Cash Flows

Projected movements of cash in and out of a business, used for budgeting and financial planning.

Fixed Maturity

The predetermined date on which an investment, often a bond or other fixed-income security, matures and the principal is supposed to be repaid.

Future Cash Flows

Projected incoming and outgoing cash amounts expected to be received or paid over future periods.

Fundamental Analysis

A systematic process in which a security is valued by estimating the performance of the underlying company and the future cash flows associated with owning the security. These are discounted to arrive at an intrinsic value for the security.