Do Problem $7\mathrm{.}1$ The assignment requires that you complete an initial Precedence Diagram to gain information on which Activities$$ durations to reduce. You only work on Critical Path activities, but the critical path MAY change each time you reduce an activity duration. You might even reduce the same activity twice! So it$$s important to complete the precedence diagram for EACH cycle! This problem is very difficult but if you can complete at least three cycles, that would be acceptable to me$.$ It$$s usually about $5$ cycles to completely $$crash$$ the project.

FIGURE $7\mathrm{.}1$ Example of the "Lazy S$"$ Cash Flow Curve for Expenses.

for such funds. A banker will not be favorably impressed with a contractor who did not anticipate the need for funds but suddenly needs them to satisfy an immediate indebtedness.

If the cash position is positive, the contractor may wish to invest the surplus funds for a short duration. These funds may be invested in a money market account, treasury notes, or certificates of deposit. The actual decision of where the funds will be deposited depends on the amount of funds available and the duration for which the surplus funds can be invested.

The flow of funds$-$whether revenues or disbursements$-$is generally plotted against project time. The abscissa is shown as

the project duration, and the ordinate is the cumulative funds flow $($see Figure $7\mathrm{.}1).$ This information is generally in the form of a "lazy S$."$ Although most curves take on a lazy S appearance, the relationship of the disbursements to the receipts dictates whether the cash position is positive or negative.

The Sports Facility Project

The costs associated with the activities for the sports facility project described in Chapters $1,3,$ and $6$ are shown in Table $7\mathrm{.}1.$ If the costs represent an accurate portrayal of

Table $7\mathrm{.}1$ Costs of the Activities for the Sports Facility Project