Given the Tasks, Estimated Durations, and Crash Costs Shown Below

question 23

Multiple Choice

Given the tasks, estimated durations, and crash costs shown below, which task would you crash last in order to minimize the project length?

• A)Task A
• B)Task B
• C)Task C
• D)Task D
• E)Task E

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Definitions:

Equivalent Annual Cost

A financial metric used to compare the cost effectiveness of various investments with different lifespans, by converting costs into an annualized figure.

Present Value

The present-day worth of future monetary amounts or cash flow series, determined by applying a specified rate of return.

Operating Cash Flows

The cash generated from a company’s normal business operations, indicating its capability to generate sufficient revenue to maintain and grow operations.

Pre-tax Net Income

The amount of income earned by a company before taxes are deducted, representing its profitability.