1. Finally, solve the following problem. Although not covered in class, the relationship between direct and indirect costs is described in your book. The question requires you find the lowest total cost (the sum of indirect and direct costs).

Activity	Normal Time	Crash Time	Normal Cost	Crash Cost	Immed. Pred.
A	2	1	$50	$70	--
B	4	2	80	160	A
C	8	4	70	110	A
D	6	5	60	80	A
E	7	6	100	130	B, C
F	4	3	40	100	D
G	5	4	100	150	E, F

a. Construct the network diagram.

b. Indicate the critical path when normal activity times are used.

c. Describe the process shown in the PDF file HW3 Prob 4 found in my DropBox account in the Spring 2022 > Homework > HW 3 file folder. You do not need to make this a gruesome step by step description, but rather outline how the procedure unfolded and why it finally ended.

Extra Credit (10 points beyond the 10 for problem 4): Solve the crashing problem described in class and in the PDF file described earlier by. The solution should be implemented on an EXCEL spreadsheet in a similar fashion to the approach demonstrated in class.

a. Compute the minimum total direct cost for each project duration based on the cost associated with each activity. Consider durations starting from the normal expected completion time down to the shortest time the project can be completed.

b. If the indirect costs for each project duration are $800 at 22 weeks and then decline by $100 per week for each week shortened (until the indirect cost is $0), what is the total project cost for each duration. Indicate the minimum total project cost and its duration.