A Project Has the Activity Duration and Cost Information Indicated

question 95

Multiple Choice

A project has the activity duration and cost information indicated in the table where all times are in weeks.There is a penalty of $6,000 per week for every week the project extends beyond 25 weeks.What is the lowest total cost duration for completing this project? $\begin{array}{|l|l|l|l|l|l|}\hline \text { Activity } & \text { Predecessor } & \begin{array}{l}\text { Normal } \\\text { Time }\end{array} & \begin{array}{l}\text { Normal } \\\text { Cost }\end{array} & \text { Crash Time } & \text { Crash Cost } \\\hline \text { A } &--& 8 & \$ 12,000 & 5 & \$ 22,000 \\\hline \mathrm{B} & \text { A } & 12 & \$ 18,000 & 9 & \$ 32,000 \\\hline \text { C } & \text { A } & 15 & \$ 22,000 & 9 & \$ 62,000 \\\hline \mathrm{D} & \mathrm{B} & 3 & \$ 9,000 & 2& \$ 18,000 \\\hline \mathbf{E} & \text { C } & 9 & \$ 15,000 & 5 & \$ 35,000 \\\hline \mathrm{F} & \mathrm{E} & 7 & \$ 5,000 & 5 & \$ 8,000 \\\hline \mathrm{G} & \mathrm{D} & 8 & \$ 13,000 & 6 & \$ 23,000 \\\hline \mathrm{H} & \mathrm{A} & 12 & \$ 20,000 & 8 & \$ 32,000 \\\hline \mathrm{J} & \mathrm{H} & 6 & \$ 45,000 & 4 & \$ 56,000 \\\hline\end{array}$

• A)34 weeks
• B)36 weeks
• C)40 weeks
• D)43 weeks

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Definitions:

Lump-Sum Tax Rate

A tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This creates a situation where the tax burden falls more heavily on those with lower income or profit.

Marginal Tax Rate

The amount of tax applied to an additional dollar of income, often used in progressive tax systems.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that is paid in taxes.

Income

Monetary payment received for work, from investments, or from government benefits, contributing to an individual's wealth.