What Is the Cost to Finish This Project (All Activity

question 32

Essay

What is the cost to finish this project (all activity durations are in weeks and costs in US dollars)as quickly as possible? $$\begin{array} { | l | l | l | l | l | l | } & & \text { Normal } & \text { Minimum } & \text { Normal } & \\ \text { Activity } & \text { Predecessor } & \text { Time } & \text { Time } & \text { Cost } & \text { Crash Cost } \\\hline \mathrm { A } & & 12 & 10 & 1000 & 1500 \\\hline \mathrm { B } & \mathrm { A } & 5 & 3 & 1200 & 1950 \\\hline \mathrm { C } & \mathrm { A } & 9 & 7 & 1500 & 2100 \\\hline \mathrm { D } & \mathrm { B } , \mathrm { C } & 14 & 10 & 1800 & 2100 \\\hline \mathbb { E } & \mathrm { B } & 4 & 3 & 1400 & 1875 \\\hline \mathbb { F } & \mathrm { D } & 9 & 8 & 1000 & 1450 \\\hline \mathrm { G } & \mathrm { E } & 7 & 5 & 700 & 1200 \\\hline \mathrm { H } & \mathrm { F } , \mathrm { G } & 11 & 8 & 2000 & 3000 \\\hline \mathrm { I } & \mathrm { H } & 8 & 6 & 1100 & 1700 \\\hline\end{array}$$

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Definitions:

Fair Value

Fair value refers to the estimated market price of an asset or liability based on current market conditions and counterparties' knowledge.

Gain on Sale

The profit realized from the sale of assets other than inventory, calculated as the sale proceeds minus the carrying value of the asset sold.

Debt Investments

Financial assets purchased with the expectation that the investment will generate interest income and be repaid in the future.

Interest Accrual

The recognition of interest earned or payable that has accumulated but not yet been recorded or paid.