You Have Collected the Data for a Time-Cost CPM Scheduling

question 66

Multiple Choice

You have collected the data for a time-cost CPM scheduling model analysis.The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100.If you crash this project by one day, what is the total (i.e., direct and indirect) project cost?

• A) $2,150
• B) $2,300
• C) $2,400
• D) $2,450
• E) $2,500

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Definitions:

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) where the interest rate increases at set intervals over the term of the investment.

Compounded Annually

A method of calculating interest where the interest is added to the principal at the end of each year, leading to compound growth.

Interest

The cost of borrowing money, where borrowers pay a fee to the lender for the money borrowed, typically expressed as a percentage of the principal.

Total Interest Owed

The cumulative amount of interest one must pay on a loan over its duration.