Question

A project consists of seven activities. The activity durations and costs are estimated in two modes: the normal mode and the crashed mode. Fig.1 Activity/Normal duration diagram A (4) -> C (3) -> F (5) A (4) -> D (7) B (5) -> D (7) -> F (5) B (5) -> E (2) -> G (9) Fig. 2 Activity Durations and Costs Activity | Normal Duration (days) | Normal Direct cost | Crashed Duration (days) | Crashed Direct cost | Slope ($/day) A | 4 | $ 1,000 | 3 | $ 2,000 | $ 1,000 B | 5 | $ 2,500 | 3 | $ 5,000 | $ 1,250 C | 3 | $ 750 | 2 | $ 1,200 | $ 450 D | 7 | $ 3,500 | 5 | $ 5,000 | $ 750 E | 2 | $ 500 | 1 | $ 2,000 | $ 1,500 F | 5 | $ 2,000 | 4 | $ 3,000 | $ 1,000 G | 9 | $ 4,500 | 7 | $ 6,300 | $ 900 Sum | - | $ 14,750 | - | $ 24,500 | - The total project cost is determined as the sum of activity (direct) costs and the indirect costs. The indirect costs for the project change according to the project duration. (See Table 1 below.) For example, the project cost at the normal mode schedule is $26,750 from the sum of activity (direct) costs, $14,750, and the indirect costs for the 17-day normal schedule, $12,000. Table 1. Indirect costs of the project Project duration | 13 days | 14 days | 15 days | 16 days | 17 days Indirect costs | $6,500 | $7,500 | $8,500 | $10,000 | $12,000

          A project consists of seven activities. The activity durations and costs are estimated in two modes: the normal mode and the crashed mode.

Fig.1
Activity/Normal duration diagram
A (4) -> C (3) -> F (5)
A (4) -> D (7)
B (5) -> D (7) -> F (5)
B (5) -> E (2) -> G (9)

Fig. 2
Activity Durations and Costs
Activity | Normal Duration (days) | Normal Direct cost | Crashed Duration (days) | Crashed Direct cost | Slope ($/day)
A | 4 | $ 1,000 | 3 | $ 2,000 | $ 1,000
B | 5 | $ 2,500 | 3 | $ 5,000 | $ 1,250
C | 3 | $ 750 | 2 | $ 1,200 | $ 450
D | 7 | $ 3,500 | 5 | $ 5,000 | $ 750
E | 2 | $ 500 | 1 | $ 2,000 | $ 1,500
F | 5 | $ 2,000 | 4 | $ 3,000 | $ 1,000
G | 9 | $ 4,500 | 7 | $ 6,300 | $ 900
Sum | - | $ 14,750 | - | $ 24,500 | -

The total project cost is determined as the sum of activity (direct) costs and the indirect costs.
The indirect costs for the project change according to the project duration. (See Table 1 below.) For example, the project cost at the normal mode schedule is $26,750 from the sum of activity (direct) costs, $14,750, and the indirect costs for the 17-day normal schedule, $12,000.

Table 1. Indirect costs of the project
Project duration | 13 days | 14 days | 15 days | 16 days | 17 days
Indirect costs | $6,500 | $7,500 | $8,500 | $10,000 | $12,000

A project consists of seven activities. The activity durations and costs are estimated in two modes: the normal mode and the crashed mode.

Fig.1
Activity/Normal duration diagram
A (4) -> C (3) -> F (5)
A (4) -> D (7)
B (5) -> D (7) -> F (5)
B (5) -> E (2) -> G (9)

Fig. 2
Activity Durations and Costs
Activity | Normal Duration (days) | Normal Direct cost | Crashed Duration (days) | Crashed Direct cost | Slope (/day)
A | 4 | 1,000 | 3 | 2,000 | 1,000
B | 5 | 2,500 | 3 | 5,000 | 1,250
C | 3 | 750 | 2 | 1,200 | 450
D | 7 | 3,500 | 5 | 5,000 | 750
E | 2 | 500 | 1 | 2,000 | 1,500
F | 5 | 2,000 | 4 | 3,000 | 1,000
G | 9 | 4,500 | 7 | 6,300 | 900
Sum | - | 14,750 | - | 24,500 | -

The total project cost is determined as the sum of activity (direct) costs and the indirect costs.
The indirect costs for the project change according to the project duration. (See Table 1 below.) For example, the project cost at the normal mode schedule is 26,750 from the sum of activity (direct) costs,14,750, and the indirect costs for the 17-day normal schedule, 12,000.

Table 1. Indirect costs of the project
Project duration | 13 days | 14 days | 15 days | 16 days | 17 days
Indirect costs |6,500 | 7,500 |8,500 | 10,000 |12,000

Added by Juan Jos- Q.

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