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Given the Critical Path Below, Calculate the Following
A

question 125

Essay

Given the critical path below, calculate the following
a. The crash cost per unit time savings for each activity.
b. The maximum total crash time savings and cost.
c. The maximum total time-savings with a $7000 budget.
 Activity  Normal Time  Normal Cost  Crash  Duration  Crash Cost  A 8 days $8,0006 days $12,000 B 5 days $2,0002 days $9,500 C 10 days $9,0008 days $12,000\begin{array} { | c | c | c | c | c | } \hline \text { Activity } & \text { Normal Time } & \text { Normal Cost } & \begin{array} { c } \text { Crash } \\\text { Duration }\end{array} & \text { Crash Cost } \\\hline \text { A } & 8 \text { days } & \$ 8,000 & 6 \text { days } & \$ 12,000 \\\hline \text { B } & 5 \text { days } & \$ 2,000 & 2 \text { days } & \$ 9,500 \\\hline \text { C } & 10 \text { days } & \$ 9,000 & 8 \text { days } & \$ 12,000 \\\hline\end{array}

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Definitions:

Operating Income

This metric reflects the profits earned from a company's core business operations, excluding non-operating income and expenses.

Cost Of Capital

The essential return rate an enterprise has to produce on its investment activities to sustain its market assessment and appeal to investors.

Cost Of Capital

The essential profit ratio a company is expected to reach in its investing endeavors to keep its marketplace value and attract financial backers.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

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