Prepare a Crashing Plan for the Following Project That Will

question 1

Essay

Prepare a crashing plan for the following project that will reduce the project duration by three weeks. $$\begin{array} { l c c c } \text { Activity } & \begin{array} { c } \text { Normal } \\\text { Time (week) }\end{array} & \begin{array} { c } \text { Cost for } \\\text { First Crash }\end{array} & \begin{array} { c } \text { Cost for } \\\text { Second Crash }\end{array} \\\hline 1 - 2 & 4 & 12 & 15 \\2 - 4 & 5 & 15 & 15 \\1 - 3 & 5 & 10 & 12 \\3 - 4 & 4 & 8 & 9 \\4 - 5 & 6 & 20 & 20 \\5 - 6 & 3 & 11 & 14 \\6 - 7 & 5 & 12 & 13 \\5 - 7 & 7 & 15 & 16\end{array}$$

Recognize the role of government intervention in correcting market failures due to externalities.

Distinguish between positive and negative externalities and their effects on social welfare.

Comprehend the purpose and impact of the patent system on technological advancements.

Understand the mechanisms of internalizing externalities to correct market outcomes.

---

Definitions:

Single-Index Model

A simplified way to estimate the return on a security based on its sensitivity to a single market index.

Security Returns

The gains or losses from investing in a financial security, usually expressed as a percentage of the investment's initial cost.

Macro Events

Large-scale events that affect the broad economy or financial markets, including political changes, natural disasters, or widespread economic shifts.

Firm-Specific Events

Events that affect a particular company directly, such as earnings reports, mergers, or product launches, which can impact the company's stock price independent of market trends.