Given the project network derived in Part A of the case from Chapter 7, Brown also wants to be prepared to answer any questions concerning compressing the project duration. This question will almost always be entertained by the accounting department, review committee, and the client. To be ready for the compression question, Brown has prepared the following data in case it is necessary to crash the project. (Use your weighted average times (te) computed in Part A of the International Capital case found in Chapter 7.)

Using the data provided, determine the activity crashing decisions and best-time cost project duration. Given the information you have developed, what suggestions would you give Brown to ensure she is well prepared for the project review committee? Assume the overhead costs for this project are $700 per workday. Will this alter yoursuggestions?

Activity Normal Cost Maximum Crash Time Crash Cost/Day $3,000 5,000 6,000 20,000 10,000 7,000 20,000 8,000 S 500 1000 3,000 1,000 1,000 3,000 2,000 2,000 1,000 1,000 7,000 12,000 Total normal costs = $103,000