he Project Manager for a house construction project has been asked to look at alternatives to

reduce project duration. As shown on the project network hereunder, the normal project

duration is $27$ months, at a normal cost of $$300$k$.$ Crash cost and time data are provided by the

experts in the hereunder table. Indirect costs are $$300$k$,$ and reduce by $$45$k for each month

reduction in project duration.

$1)$ Compute the direct, indirect and total costs for each project duration between normal

time and the maximum time the project can be crashed. Show your calculations for each

of the crash steps $($what activity, at what direct, indirect and total costs$)$

$2)$ What is the optimum cost$-$time duration? What$$s the project cost at this optimum cost$-$

time duration?

Activity Crash cost Maximum Normal Normal

$($slope$)($crashable$)$ Time Cost

# of times $($months$)($$k$)$

A $8021040$

B $303810$

C $402580$

D $5021150$

E $100415100$

F $301620$

Total $300$