A Project Has the Activity Duration and Cost Information Indicated

question 31

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 $250 per week for every week the project extends beyond 32 weeks.What is the duration of the least expensive project possible? $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Activity } & \begin{array} { l } \text { Normal } \\\text { time }\end{array} & \begin{array} { l } \text { Crash } \\\text { time }\end{array} & \begin{array} { l } \text { Normal } \\\text { Cost }\end{array} & \begin{array} { l } \text { Crash } \\\text { Cost }\end{array} & \text { Predecessor } \\\hline \mathrm { A } & 8 & 5 & \$ 1,000 & 2,000 & \\\hline \mathrm { B } & 6 & 4 & 1,500 & 2,000 & \text { A } \\\hline \mathrm { C } & 8 & 5 & 1,800 & 2,300 & \mathrm {~A} \\\hline \mathrm { D } & 12 & 9 & 1,000 & 1,800 & \mathrm {~B} \\\hline \mathrm { E } & 14 & 11 & 950 & 1,450 & \mathrm {~B} \\\hline \mathrm { F } & 9 & 7 & 1,500 & 1,900 & \text { C, D } \\\hline \mathrm { G } & 7 & 5 & 2,300 & 2,800 & \text { E, F } \\\hline\end{array}$$

• A) 38 weeks
• B) 37 weeks
• C) 36 weeks
• D) 35 weeks

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Definitions:

Markup Percent

The extra portion put on the cost of items to cover the expenses of operation and achieve profit.

Selling Price

The amount for which something is sold, making it the price a buyer pays to acquire a product or service.

Markup Percent

The proportion added onto the purchase price of products to account for overhead costs and gain a profit.

Cost

The amount of money required to purchase something or the expenditure incurred to produce something.