The total project cost includes project direct cost and indirect cost. The (indirect) cost associated with sustaining the project is $4,000 per week. What is the optimal crashing plan? Calculate the lowest total project cost.
 

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Activity A B C D E F G H I Immediate Predecessor None A A C B, D с E, F F G, H Normal Time (Weeks) 9 5 3 6 4 7 5 6 8 Crash Time (Weeks) 6 3 2 4 2 4 4 2 5 Total: Normal Cost S 20,000 6,000 15,500 32,000 5,000 17,500 30,000 26,000 40,000 $192,000 Crash Cost $ 35,000 9,000 20,000 36,000 10,000 25,000 34,000 30,000 58,000 $257,000 Activity A B C D E F G H I Immediate Predecessor None A A C B, D с E, F F G, H Normal Time (Weeks) 9 5 3 6 4 7 5 6 8 Crash Time (Weeks) 6 3 2 4 2 4 4 2 5 Total: Normal Cost S 20,000 6,000 15,500 32,000 5,000 17,500 30,000 26,000 40,000 $192,000 Crash Cost $ 35,000 9,000 20,000 36,000 10,000 25,000 34,000 30,000 58,000 $257,000 Activity A B C D E F G H I Immediate Predecessor None A A C B, D с E, F F G, H Normal Time (Weeks) 9 5 3 6 4 7 5 6 8 Crash Time (Weeks) 6 3 2 4 2 4 4 2 5 Total: Normal Cost S 20,000 6,000 15,500 32,000 5,000 17,500 30,000 26,000 40,000 $192,000 Crash Cost $ 35,000 9,000 20,000 36,000 10,000 25,000 34,000 30,000 58,000 $257,000 Activity A B C D E F G H I Immediate Predecessor None A A C B, D с E, F F G, H Normal Time (Weeks) 9 5 3 6 4 7 5 6 8 Crash Time (Weeks) 6 3 2 4 2 4 4 2 5 Total: Normal Cost S 20,000 6,000 15,500 32,000 5,000 17,500 30,000 26,000 40,000 $192,000 Crash Cost $ 35,000 9,000 20,000 36,000 10,000 25,000 34,000 30,000 58,000 $257,000

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ANSWER To determine the optimal crashing plan and calculate the lowest total project cost we need to calculate the cost and time savings for each activity when crashed Lets calculate the crashing savi... View the full answer