Question: Case 9-1 (Static) International Capital, Inc.- Part B Given the project network derived in Part A of the case from Chapter 7 Appendix 71, Beth

Case 9-1 (Static) International Capital, Inc.-
Case 9-1 (Static) International Capital, Inc.-
Case 9-1 (Static) International Capital, Inc.-
Case 9-1 (Static) International Capital, Inc.- Part B Given the project network derived in Part A of the case from Chapter 7 Appendix 71, Beth 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, the review committee, and the client. To be ready for the compression question, Beth has prepared the following data in case it is necessary to crash the project. (Use your weighted average times [tel computed in Part A of the International Capital case found in Chapter 7) Maximum Crash Time Activity Crash Cost/Day $ 500 1.000 c D E 7 G Normal Cost $ 3.000 5,000 6.000 20.000 10.000 7,000 20,000 8,000 5,000 7,000 12,0 $103.000 1 2 3,000 1.000 1.000 3.000 2,000 2.000 1,000 1.000 T 3 Total normal costa Using the data provided, determine the activity crashing decisions and best-time cost project duration Activity Number of days crashed days) days) days) days) day(s) Crash cost Compressed days days days dinys days days Tot $ Given the information you have developed, what suggestions would you give Beth to ensure she is well prepared for the project review committee Assume the overhead costs for this project are $700 per workday Case 9-1 (Static) International Capital, Inc. - Part B Given the project network derived in Part A of the case from Chapter 7, Appendix 71, Beth 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, the review committee, and the client. To be ready for the compression question, Beth has prepared the following data in case it is necessary to crash the project. (Use your weighted average times to computed in Port of the International Capital case found in Chapter 7.) Activity Normal Cost Maximum Crash Time Crash Cont/Day $ 3,000 $ 500 5,000 1,000 6,000 20,000 3,000 10,000 1,000 7,000 1.000 20,000 3.000 8,000 2.000 T 5,000 2.000 J 7.000 1.000 K 12,000 1.000 Total normal costa $100,000 2 0 D E P G 2 Using the data provided, determine the activity crashing decisions and best-time cost project duration Activity Number of days crashed day(s) day(s) day(s) day(s) day(s) Crash cost Compressed days days days days days days $ 0 Total Given the information you have developed, what suggestions would you give Beth 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 your suggestions

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