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Question 2 (27 marks) The following data has been extracted from Namibia Construction Company (NCC) a company that undertakes various building projects around Namibia. Activity Previous activity Normal Normal Crash Crash Cost time costs time costs slope (days) N$ N$ 13 20 000 12 25 000 ? B 13 15 000 10 18 000 ? 12 10 000 12 10 000 ? D A ? 12 000 8 12 000 ? E 10 8 000 8 11 000 ? F E 5 6 000 5 6 000 ? G D, F 7 4 000 5 5 000 ? H B, C 6 5 000 5 6 500 ? GH 9 8 000 8 ? 3 000 Page 14 of 16 The duration of activity D cannot be determined accurately. The estimates are as follows: Most likely 8 days Optimistic time 6 days Pessimistic time 10 days You have been hired as the management accountant of NCC and you have been tasked to assist the management in various calculations. Mark Requirement Sub- Total total 2.1 Draft a network diagram for the project. 10 10 2.2 Identify the different paths and indicate which one is the critical path. 6 16 2.3 Calculate the normal cost of the project. 2 18 2.4 Calculate the earliest starting time of the event that precedes activity 2 20 H. 2.5 Calculate the latest starting time of the event that precedes activity 2 G. 22 2.6 Calculate the crash cost for activity I. 2 24 2.7 Calculate the total cost if the project has to be completed in 41 days. 3 27 Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these. Total 27