On May 1 Arnie Watson sent a memo to his
On May 1, Arnie Watson sent a memo to his boss, the director of project management, stating that the MX project would require thirteen weeks for completion according to the figure shown at the top of page 542.


Arnie realized that the customer wanted the job completed in less time. After discussions with the functional managers, Arnie developed the table shown below:


a. According to the contract, there is a penalty payment of $5,000 per week for every week over six. What is the minimum amount of additional funding that Arnie should request?
b. Suppose your answer to part a gives you the same additional minimum cost for both an eight-week and a nine-week project. What factors would you consider before deciding whether to do it in eight or nineweeks?
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