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The project of building a backyard swimming pool consists of eight major activities and has to be completed within 19 weeks. The activities and related data are given in the following table:
Activity
Immediate predecessor
Activity time (weeks)
A
-
3
B
6
C
2
D
B,C
5
E
4
F
G
9
H
F,G
a. Draw a network diagram for this problem.
b. Determine the critical path and the expected project completion time.
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The interest rate on the three year loan is 0.087. Whereas the interest rate on the two year loan is 0.085 as given in A. Suppose that the liquidity premium at t=1 is 0.002 and tha
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