What Is the Minimum Completion Cost of This Project If

question 69

Essay

What is the minimum completion cost of this project if there is a penalty of $1,000 for each day the project lasts longer than 27 days? Activity durations in days and crash costs in dollars are given in the table. $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | } \hline \text { Activity } & \begin{array} { l } \text { Reg } \\\text { Length }\end{array} & \text { Crash } & \begin{array} { l } \text { Reg } \\\text { Cength }\end{array} & \begin{array} { l } \text { Cosash } \\\text { Cost }\end{array} & \text { Activity } & \begin{array} { l } \text { Reg } \\\text { Length }\end{array} & \text { Crash } & \text { Reg } & \begin{array} { l } \text { Crash } \\\text { Cost } \\\text { Cost }\end{array} \\\hline \text { A } & 7 & 6 & 400 & 1,200 & \text { L } & 7 & 5 & 800 & 1,500 \\\hline \text { C } & 1 & 1 & 450 & 450 & \mathbb { N } & 6 & 5 & 500 & 1,250 \\\hline \mathrm { D } & 9 & 6 & 550 & 2,350 & \text { R } & 4 & 4 & 600 & 600 \\\hline \mathrm { J } & 9 & 7 & 500 & 1,650 & \mathrm {~S} & 10 & 8 & 450 & 1,350 \\\hline\end{array}$$

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Definitions:

Par Value

A nominal value assigned to a share of stock in the corporation's charter, serving as the minimum price at which shares can be issued.

Common Stock

A type of equity security that represents ownership interest in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Treasury Stock

Repurchased shares by a company, treasury stock is treated as an asset on the balance sheet and can affect the company's shareholders' equity and earnings per share.

Paid-In Capital

Funds received from investors in exchange for shares of a company's stock, reflecting the equity capital contributed by shareholders.