How many days would advise project should be crashed


Assignment:

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.

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