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Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera's technology firm in Baton Rouge. The activities necessary for the completion of this project are listed in the following table:
ACTIVITY
NORMAL TIME (WEEKS)
CRASH TIME (WEEKS)
NORMAL COST
CRASH COST
IMMEDIATE PREDECESSOR(S)
A
4
3
$2,000
$2,600
-
B
2
1
2,200
2,800
C
500
D
8
2,300
2,600
E
6
900
1,200
F
3,000
4,200
G
1,400
2,000
D, E
a) What is the project completion date?
b) What is the total cost required for completing this project on normal time?
c) If you wish to reduce the time required to complete this project by 1 week, which activity should be crashed, and how much will this increase the total cost?
d) What is the maximum time that can be crashed? How much would costs increase?
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