Question: Assume that a project manager expects to finish a project in 21 days as shown in the table below. However, the owner of the project

Assume that a project manager expects to finish a project in 21 days as shown in the table below. However, the owner of the project wants it in 14 days and any period after 14 days the project manager has to pay penalty cost of $100 per day. Indirect project costs = $250 per day.

Project Activity and Cost Data

Activity

Normal Time (days)

Normal Cost ($)

Crash Time (days)

Crash Cost ($)

Immediate predecessor(s)

A

5

1000

4

1200

-

B

5

800

3

2000

-

C

2

600

1

900

A, B

D

3

1500

2

2000

B

E

5

900

3

1200

C, D

F

2

1300

1

1400

E

G

3

900

3

900

E

H

5

500

3

900

G

How much is the total penalty costs if the manager could not crash?

Select one:
a.

$2100

b.

$1750

c.

$1400

d.

$700

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