Three Critical Path Activities Are Candidates for Crashing on a CPM

question 71

Essay

Three critical path activities are candidates for crashing on a CPM network.Activity details are in the table below.
a.What is the crash cost per unit time for each of the three activities?
b.Which activity should be crashed first to cut one day from the project's duration;how much is added to project cost?
c.Which activity should be the next activity crashed to cut a second day from the project's duration;how much is added to project cost?

---

Definitions:

Risk Loving

Condition of preferring a risky income to a certain income with the same expected value.

Risk Neutral

A condition or attitude where an individual is indifferent to risk when making economic decisions.

Dividend Yield

The ratio of a company's annual dividends to its share price, indicating the earnings a shareholder gets for each share held.

Capital Loss

A decrease in the value of an investment or asset from its purchase price.