A Project Has the Activity Duration and Cost Information Indicated

question 85

Multiple Choice

A project has the activity duration and cost information indicated in the table where all times are in weeks.What is the lowest total cost for completing this project in 35 days? $\begin{array}{|l|l|l|l|l|l} & & \text { Normal } & \text { Normal } & & \\\text { Activity } & \text { Predecessor } & \text { Time } & \text { Cost } & \text { Crash Time } & \text { Crash Cost } \\\hline \mathbf{A} & -- & 3 & \$ 12,000 & 5 & \$ 22,000 \\\hline \mathrm{B} & \mathrm{A} & 12 & \$ 18,000 & 9 & \$ 32,000 \\\hline \mathrm{C} & \mathrm{A} & 15 & \$ 22,000 & 9 & \$ 62,000 \\\hline \mathrm{D} & \mathrm{B} & 3 & \$ 9,000 & & \$ 18,000 \\\hline \mathbb{E} & \mathrm{C} & 9 & \$ 15,000 & 5 & \$ 35,000 \\\hline \mathrm{F} & \mathbb{E} & 7 & \$ 5,000 & 5 & \$ 8,000 \\\hline \mathrm{G} & \mathrm{D} & 3 & \$ 13,000 & 6 & \$ 23,000 \\\hline \mathbb{H} & \mathrm{A} & 12 & \$ 20,000 & 8 & \$ 32,000 \\\hline \mathrm{J} & \mathbb{H} & 6 & \$ 45,000 & 4 & \$ 56,000 \\\hline\end{array}$

• A) $211,500
• B) $197,500
• C) $203,500
• D) $194,500

Apply the concept of time value of money in situations involving multiple payments or investments over time.

Analyze and solve problems involving loan repayment schedules, including determining the size of equal payments.

Understand the implications of interest rate changes on loans and investments.

Calculate maturity values of investments using given interest rates and time periods.

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Definitions:

Air Travel

The act of traveling in an aircraft, often commercially, where passengers are transported from one location to another.

Law of Demand

Economic principle stating that as the price of a good increases, the quantity demanded decreases, and vice versa, ceteris paribus.

Ticket Prices

The cost at which an individual can purchase a ticket to gain entry to an event, such as a concert, movie, or sports game.

Input Costs

Expenses incurred by firms for purchasing the raw materials, labor, and other inputs required for the production of goods or provision of services.