The correct answer is 75 just need to know how to get there. Please attach excel

Question

The correct answer is 75 just need to know how to get there. Please attach excel worksheet with formulas.

Question 5 Not answered Points out of 10.00 P Flag question Development of an update of a particular software product is being considered by a software house. Information on the activities necessary for the completion of this project is provided in the following table Activi Immediate Normal Time Crash Time Predecessors (Weeks) (Weeks) Normal Cost Crash Cost $600 $500 $550 $200 $200 $100 $750 $1000 $900 $550 $425 $250 $140 $1000 6 D, E Verify that the critical path using the normal time for each activity is A, D, G, and the minimum project duration in weeks is 5+6+3. Then answer the following question: What is the minimum cost of reducing project duration by one week? Answer The correct answer is: 75

Explanation / Answer

Critical Path ( longest duration) is A-D-G is 14 weeks . Next path is B-E-G = 12 weeks.

So we need to crash any one activity of the critical path by 1 week to reduce the total project duration by 1 week.

So any one of the activities A, D, G need to be crashed.

Find out per unit crash cost for each of these three activities to find which of them is the most economical to crash.

Unit Crash Cost = (Crash cost - Normal Cost )/ (Normal Time - Crash Time) , So

Cost of crashing activity A = (1000-600)/(5-4) = 400

Cost of crashing activity D = (425-200)/(6-3) = 75

Cost of crashing activity G = (1000-750)/(3-2) = 250

The lowest cost is of activity D = 75 <--- Answer

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