Start-----A-----B-----

E------End

-----C------D----

Activity Normal Time (days) Normal Cost Crash Time Crash Cost

A 7 $300 3 $800

B 3 $250 1 $350

C 6 $400 4 $900

D 3 $200 2 $500

E 2 $300 1 $550

PROBLEM 1

Use the network diagram below and the additional information provided to answer the corresponding questions. (10 points)

a) Give the crash cost per day per activity. (5 points)

b) Which activities should be crashed to meet a project deadline of 10 days at minimum cost? What is the cost impact of crashing these activities? (3 points)

c) Find the new budget (or cost of the project). (2 points)