|
Project Duration (in days)
|
Direct Costs
|
Overhead Costs
|
Penalty Charges
|
Total Costs
|
|
60
|
$125,000
|
$15,500
|
$50,000
|
|
|
57
|
140,000
|
13,000
|
35,000
|
|
|
54
|
175,000
|
10,500
|
20,000
|
|
|
51
|
210,000
|
8,000
|
5,000
|
|
a. Complete the table. How many days would you advise the project should be crashed? Why?
b. Suppose direct costs of crashing the project only increased $5,000 per day crashed at a steady rate (starting with $125,000 on Day 60).
How many days would you advise that the project be crashed? Show your work.