The Critical Path (CP) activity has ____________.

A.

infinity float/slack

B.

average float/slack

C.

maximum float/slack

D.

zero float/slack

• Question 11

  Points: 1

  The B-C Ratio is computed by dividing the

  A.

  Initial investment by the total cash flows.

  B.

  Total cash outflows by the initial investment.

  C.

  Present value of cash inflows by the initial investment.

  D.

  Initial investment by the present value of cash flows.

• Question 12

  Points: 1

  Arrange the project stages in chronological order.

  1. Execution stage
  2. Planning stage
  3. Delivering/Closure stage
  4. Definition stage

  A.

  iv, ii, i and iii

  B.

  ii, i, iv, and iii

  C.

  ii, iv, i and iii

  D.

  iv, i, ii and iii

• Question 13

  Points: 1

  Why is the payback method often considered inferior to discounted cash flow in capital investment appraisal?

  A.

  It does not calculate how long it will take to recoup the money invested

  B.

  It is more difficult to calculate

  C.

  It does not take account of the time value of money

  D.

  It only takes into account the future income of a project

Arrange the planning steps in chronological order.

1. Determine the activity duration
2. Determine the work activities
3. Draw the logical network
4. Determine the logical relationships

A.

i, ii, iv and iii

B.

ii, i, iv, and iii

C.

iv, ii, i and iii

D.

ii, iv, i and iii

• Question 16

  Points: 1

  The payback period is the period

  A.

  a project takes to recover its initial cash outflow

  B.

  a project takes to pay back the loan taken to purchase the capital assets

  C.

  equal to the useful life of the machines

  D.

  over which the project will be getting operating cash inflows

• Question 17

  Points: 1

  Determine the correct statements concerning the payback period.

  A.

  The payback period measures the time that a project will take to generate enough cash flows to cover the initial investment.

  B.

  The payback period ignores cash flows after the payback point has been reached.

  C.

  The payback period is simple to calculate and understand.

  D.

  It takes account of the time value of money.

• Question 18

  Points: 1

  Based on the list of tasks below, which of the following can be said?

  Task IPA

  A -

  B A

  C A, B

  D A, C

  A.

  Task C can begin as soon as both activities A and B are complete.

  B.

  Task C can begin as soon as activity B is complete.

  C.

  Task D can begin as soon as activity A or C is complete.

  D.

  Task C can begin as soon as activity A or B is complete.